Clarke Caton Hintz Architecture Planning Landscape Architecture 100 Barrack Street Trenton NJ 08608 clarkecatonhintz.com Amended Third Round Housing Element & Fair Share Plan Borough of Lebanon, Hunterdon County, New Jersey Tel: 609 883 8383 Fax: 609 883 4044 John Clarke, FAIA Philip Caton, FAICP Carl Hintz, AICP, ASLA John Hatch, AIA George Hibbs, AIA Brian Slaugh, AICP Michael Sullivan, AICP Adopted by the Planning Board May 19, 2010 Clarke Caton Hintz Amended Third Round Housing Element & Fair Share Plan Borough of Lebanon, Hunterdon County, New Jersey Adopted by the Planning Board May 19, 2010 Prepared for the Borough of Lebanon by: Carl Hintz, ASLA CLA, PP, AICP Clarke Caton Hintz PP License # 1217 Elizabeth K. McManus, PP, AICP, LEED AP Clarke Caton Hintz PP License # 5915 Clarke Caton Hintz Borough of Lebanon Planning Board Alex Saharic, Chairman Sue Lachenmayr, Vice Chairwoman Frank Clark Joe Hauck Henry Hopkins James Newman Dianne Perfit Robert Schmidt William Skene Chris Uchrin Estelle Butler, Alternate #1 Janis Malpas, Alternate #2 Karen Romano (Lebanon Borough) – Board Secretary William Shurts, Esq. (Felter, Cain & Shurts) – Board Attorney Bob Brightly, PE (Ferriero Engineering) - Board Engineer Carl Hintz, ASLA, LLA, PP, AICP (Clarke Caton Hintz) – Board Planner Clarke Caton Hintz Borough of Lebanon Council Mark Paradis, Council President Frank Clark Christopher Foley Mary Logan R. Gary Quick Robert Schmidt Michael Reino Karen Romano (Lebanon Borough) – Council Secretary Joseph Novak, Esq. (Novak & Novak) – Borough Attorney Bob Brightly, PE (Ferriero Engineering) – Borough Engineer Carl Hintz, ASLA, LLA, PP, AICP (Clarke Caton Hintz) – Borough Planner Clarke Caton Hintz TABLE OF CONTENTS EXECUTIVE SUMMARY .................................................................................................... 1 AFFORDABLE HOUSING IN NEW JERSEY .................................................................... 2 Introduction to COAH ........................................................................................................ 2 COAH’s First and Second Round Methodology ............................................................ 3 COAH’s Third Round Methodology ................................................................................. 3 Highlands Regional Master Plan ...................................................................................... 4 Recent Efforts at Affordable Housing Reform ................................................................ 5 Affordability Requirements ................................................................................................ 7 HOUSING ELEMENT AND FAIR SHARE REQUIREMENTS ......................................... 9 BOROUGH OF LEBANON AFFORDABLE HOUSING HISTORY ................................ 11 GOALS AND OBJECTIVES .............................................................................................. 12 HOUSING STOCK, DEMOGRAPHIC & EMPLOYMENT ANALYSIS ........................... 14 GROWTH TRENDS & PROJECTIONS ........................................................................... 23 Residential Trends and Projections ................................................................................ 23 Nonresidential Trends and Projections ......................................................................... 23 Capacity for Growth .......................................................................................................... 23 Availability of Existing and Planned Infrastructure ................................................ 24 Anticipated Land Use Patterns ................................................................................ 24 Borough Economic Development Policies.............................................................. 24 Constraints on Development .................................................................................. 24 CONSIDERATION OF LANDS APPROPRIATE FOR AFFORDABLE HOUSING ........ 26 RELATIONSHIP TO HIGHLANDS RMP ........................................................................ 27 LEBANON BOROUGH’S AFFORDABLE HOUSING PLAN..........................................28 Clarke Caton Hintz Calculation of the Affordable Housing Obligation ...................................................... 28 The Rehabilitation Obligation ............................................................................28 The Prior Round Obligation ...............................................................................28 The Third Round Obligation ............................................................................. 29 Satisfaction of the Rehabilitation Obligation ................................................................ 30 Satisfaction of the Prior Round Obligation ................................................................... 32 Presidential Place Inclusionary Development ................................................... 32 Heights of Lebanon Inclusionary Development ............................................... 32 Prior Round Summary........................................................................................ 33 Satisfaction of the Third Round Obligation .................................................................. 33 Presidential Place ............................................................................................... 34 Hunterdon Alliance ............................................................................................ 34 Accessory Apartment Program .......................................................................... 34 Third Round Summary ....................................................................................... 35 Implementation Schedule ................................................................................................ 35 COST GENERATION ...................................................................................................... 37 MONITORING ................................................................................................................ 38 FAIR SHARE ORDINANCES AND AFFIRMATIVE MARKETING ..................................39 AFFORDABLE HOUSING TRUST FUND ..................................................................... 40 FAIR SHARE PLAN APPENDICES Clarke Caton Hintz Appendix A. Planning Board Resolution adopting the Amended Housing Element and Fair Share Plan Appendix B. Governing Body Resolution Endorsing the Amended Housing Element and Fair Share Plan Appendix C. Revised Workbook D and Supporting Documentation Appendix D. Coach House LLC Approving Resolution Appendix E. Draft Accessory Apartment Ordinance Appendix F. Draft Affordable Housing Ordinance Appendix G. Draft Development Fee Ordinance Appendix H. Governing Body Resolution Requesting Approval of Development Fee Ordinance Appendix I. Spending Plan Appendix J. Governing Body Resolution Requesting Approval of Spending Plan Appendix K. Governing Body Resolution of Intent to Bond Appendix L. Draft Housing Liaison Ordinance and Appointing Resolution Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz EXECUTIVE SUMMARY This amended third round housing element and fair share plan has been prepared for the Borough of Lebanon, Hunterdon County in accordance with the 2008 revised rules of the New Jersey Council on Affordable Housing (“COAH”) at N.J.A.C. 5:96 et seq. and N.J.A.C. 5:97 et seq. In addition, as the Borough of Lebanon is under the jurisdiction of the New Jersey Highlands Water Protection and Planning Council (“Highlands Council”), the Borough’s affordable housing plan components were reviewed for consistency with the Highlands Regional Master Plan (“Highlands RMP”). This amended third round housing element and fair share plan was also guided by COAH’s August 12, 2009 Guidance for Municipalities that Conform to the Highlands Regional Master Plan as well as the August 2009 Highlands Council “Module 3: Housing Element and Fair Share Plan Instructions – Highlands Mod 3”. This plan is an amendment to the previous third round housing element and fair share plan adopted by the Planning Board and endorsed by the Borough Council in June 2006 and subsequently submitted as a third round petition to COAH. This Plan will serve as the foundation for the Borough’s submission to Superior Court for a Judgment of Compliance and Repose by June 8, 2010. The Plan will also be submitted to the Highlands Council by June 8, 2010. There are three components to a municipality’s affordable housing obligation: the rehabilitation share, the prior round obligation and the third round obligation. The Borough’s total affordable housing obligation can be summarized as the following: Rehabilitation Obligation: 3 units Prior Round Obligation: 34 units Third Round Obligation: 30 units (Highlands RMP) The Borough will satisfy the rehabilitation obligation with new construction units from the Presidential Place and Coach House LLC developments, the prior round obligation will by satisfied by the Heights of Lebanon and Presidential Place developments and the third round will be satisfied with a group home, remaining units at Presidential Place and an accessory apartment program. Page 1 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz AFFORDABLE HOUSING IN NEW JERSEY INTRODUCTION TO COAH In its landmark 1975 decision referred to now as “Mount Laurel I”, the New Jersey Supreme Court ruled that developing municipalities have a constitutional obligation to provide a realistic opportunity for the construction of low and moderate income housing.1 In its 1983 “Mount Laurel II” decision, the Supreme Court extended the obligation to all municipalities, designated the State Development Guide Plan or any successor State Plan as a critical touchstone to guide the implementation of this obligation and created an incentive for private developers to enforce the “Mount Laurel doctrine” by suing municipalities which are not in compliance.2 In 1985, the Fair Housing Act (“FHA”) (N.J.S.A. 52:27D-310) was adopted as the legislative response to the Mt. Laurel court decisions. The FHA created the Council on Affordable Housing as the administrative alternative to the Courts. COAH is responsible for establishing housing regions, estimating low and moderate income housing needs, setting criteria and guidelines for municipalities to determine and address their fair share numbers, and reviewing and approving housing elements and fair share plans. Municipalities have the option of filing their adopted and endorsed housing elements and fair share plans with COAH and petitioning for COAH’s approval, known as “substantive certification”. Municipalities that opt to participate in the COAH certification process are granted a measure of legal protection against exclusionary zoning litigation. By petitioning, COAH allows a municipality to maximize control of its planning and zoning options in addressing its affordable housing obligation. Similarly, under the FHA, a municipality can apply to the Superior Court for a Final Judgment of Compliance and Repose, which is the judicial equivalent of COAH’s grant of substantive certification. Under the Municipal Land Use Law (“MLUL”), a municipal Planning Board must adopt the housing element as part of the Master Plan. COAH’s process also requires the governing body to endorse the housing element by resolution. In addition, the governing body’s resolution requests that COAH review the housing element and fair share plan along with supporting documents for substantive certification action. Once the municipality’s housing element and fair share plan have been granted substantive Southern Burlington NAACP v. Township of Mt. Laurel, 67 NJ 151 (1975) Southern Burlington NAACP v. Township of Mt. Laurel, 92 NJ 158 (1983) Page 2 1 2 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz certification by COAH, the municipality’s zoning ordinance enjoys a presumption of validity against any lawsuits challenging it. COAH’S FIRST AND SECOND ROUND METHODOLOGY The FHA empowered COAH to create criteria and guidelines for municipalities to determine and address their respective fair share numbers. In response, COAH established a formula for determining municipal affordable housing obligations for the six-year period between 1987 and 1993 (N.J.A.C. 5:92-1 et seq.), which became known as the “first round.” That formula was superseded by the 1994 COAH regulations (N.J.A.C. 5:93-1.1 et seq.) which recalculated a portion of the 1987-1993 affordable housing obligation for each municipality and computed the additional municipal affordable housing need from 1993 to 1999; this 12 year cumulative period from 1987 through 1999 is known as the “second round.” COAH’S THIRD ROUND METHODOLOGY On December 20, 2004, COAH’s first version of the third round rules became effective. At that time the third round was defined as the time period from 1999 to 2014 condensed into an affordable housing delivery period from January 1, 2004 through January 1, 2014. The third round rules marked a significant departure from the methodology utilized in COAH’s two prior rounds. Previously, COAH assigned an affordable housing obligation as an absolute number to each municipality. These third round rules implemented a “growth share” approach that linked the production of affordable housing with future residential and non-residential development within a municipality. Each municipality was required to project the amount of residential and nonresidential growth that would occur during the period 2004 through 2014. Then municipalities were required to provide one affordable unit for every 8 market rate housing units developed and one affordable unit for every 25 jobs created (expressed as non-residential building square footage). However, in a unanimous decision in January 2007, the New Jersey Appellate Court invalidated key aspects of COAH’s third round rules. The Court ordered COAH to propose and adopt amendments to its rules to address the deficiencies identified by the Court. COAH’s revised rules, effective on June 2, 2008 as well as a further rule revision, adopted September 22, 2008 and effective on October 20, 2008, provide residential development and job projections for the third round (which was expanded to encompass the years 2004 through 2018). Additionally, COAH revised its ratios to require one Page 3 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz affordable housing unit for every four market rate housing units developed and one affordable housing unit for every 16 jobs created, still expressed as non-residential building square footage. As discussed below, municipalities within the Highlands that are conforming with the Highlands RMP are required to use the aforementioned affordable housing ratios; however, they may elect to utilize either COAH’s household and employment projections or the projections based on the Highlands RMP build-out under Module 2. Municipalities must set forth in the Housing Element and Fair Share Plan how they intend to accommodate the projected affordable housing obligation. However, COAH’s substantive rules also require that a municipality provide a realistic opportunity for affordable housing in proportion to its actual growth during the third round as expressed in permanent certificates of occupancy issued for residential and nonresidential development. HIGHLANDS REGIONAL MASTER PLAN In 2008, the Borough began the process of preparing a revised third round housing element and fair share plan to address COAH’s revised third round rules at N.J.A.C. 5:96 et seq. and 5:97 et seq., which became effective on June 2, 2008. During the same time period, the Borough reviewed the Highlands RMP and initiated conversations regarding participation in the Highlands RMP conformance process. On September 5, 2008, Governor Corzine issued Executive Order #114 to coordinate actions between COAH and the Highlands Council. The Executive Order directed the Highlands Council to work with COAH and the Department of Environmental Protection (“DEP”) to establish a framework for municipalities in the Highlands to provide for a realistic opportunity for affordable housing while also conforming to the Highlands RMP. In response to the Executive Order, in October, 2008, COAH and the Highlands Council entered into a Memorandum of Understanding (MOU) that outlined the structure of the relationship between COAH and the Highlands Council. Among other items, the MOU provided for joint determinations of the suitability of affordable housing sites. Additionally, the MOU identified a process for developing revised growth projections for Highlands municipalities that are consistent with the RMP. Under the MOU, the projections created under this process would serve as the basis for allocating third round growth share obligations to municipalities in the Highlands. Page 4 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Pursuant to the MOU, COAH granted waivers from the December 31, 2008 petition submission deadline established in its rules at N.J.A.C. 5:96-16.2(a) for Highlands municipalities that submitted: 1) a Notice of Intent in accordance with the Highlands Council’s Plan Conformance Guidelines; and 2) submitted an adopted resolution notifying COAH of its intent to petition COAH no later than December 8, 2009. COAH also imposed a scarce resource order for all municipalities in the Highlands that are under COAH jurisdiction in order to preserve scarce land, water, and sewer capacity for the production of affordable housing. The Borough accepted the December 8, 2009 extension. On August 12, 2009, COAH again extended the deadline for municipalities in the Highlands Region to petition for substantive certification from December 8, 2009 to June 8, 2010. COAH also adopted Guidance for Municipalities that Conform to the Highlands Regional Master Plan, and granted a waiver from COAH’s regulations that outlined how a municipality may calculate its projected growth share obligation. Instead, COAH permitted a municipality to base its third round growth share obligation on projections completed under the Highlands Module 2 build-out analysis. On August 20, 2009, the Highlands Council issued additional instructions on completing a housing element and fair share plan. RECENT EFFORTS AT AFFORDABLE HOUSING REFORM On July 17, 2008 Governor Corzine signed P.L.2008, c.46 (also known as the “Roberts Bill” after NJ Assembly Speaker Joseph Roberts), which amended the Fair Housing Act in a number of ways. Key provisions of the bill included the following: Established a statewide 2.5% nonresidential development fee instead of a nonresidential growth share delivery for affordable housing; Eliminated regional contribution agreements; and Requirement for 13% of affordable housing units and 13% of all units funded by the Balanced Housing Program and the Statewide Affordable Housing Trust Fund to be restricted to very low income households (30% or less of median income). COAH has not yet promulgated rules to effectuate the “Roberts Bill”. COAH’s 2008 revised third round rules were again challenged and the Appellate Division heard oral arguments in late 2009. A decision is expected in the spring of 2010. In addition, on July 27, 2009, Governor Corzine signed P.L. 2009, c. 90 “NJ Economic Stimulus Act of Page 5 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz 2009”, which instituted a moratorium on the collection of non-residential affordable housing development fees. On February 9, 2010, new Governor Chris Christie signed Executive Order No. 12. This Order established a five-member Housing Opportunity Task Force which was charged with reviewing the effectiveness of the Fair Housing Act, COAH and COAH’s regulatory structure in meeting the constitutional obligations under the Mount Laurel doctrine. The Executive Order also ordered COAH to refrain from continuing to process applications for substantive certification or from otherwise implementing the third round rules during the Housing Opportunity Task Force’s 90-day review period. On February 19, 2010, the Appellate Division issued a stay on the portion of the Executive Order that prevented COAH from processing applications and implementing its third round rules. On March 20, 2010, Governor Christie issued Executive Order No. 20, which rescinded Executive Order No. 12. The Governor’s Executive Order No. 20 coincided with the release of the report prepared by the Housing Opportunity Task Force on March 20, 2010. In the report, the Task Force recommended that the Governor revisit COAH’s original growth share methodology, reinstate the use of regional contribution agreements and eliminate prior round obligations. To date, the Christie Administration has not advanced the recommendations outlined in the Task Force’s report. In addition to affordable housing reform activities in the Executive branch, the legislature has introduced a number of pieces of legislation aimed at reforming affordable housing in New Jersey. The most notable is Senate Bill No. 1, known as “S-1”, which would abolish COAH and completely restructure the State’s affordable housing operation. Despite all of this uncertainty about the future of COAH, the Borough must proceed with its compliance with the current COAH regulations, which require the Borough to petition for third round substantive certification by June 8, 2010 in order to remain under COAH’s jurisdiction and therefore be protected from builder’s remedy lawsuits. A municipality’s third round fair share plan must address (1) its rehabilitation share, (2) the prior round obligation and (3) the COAH-projected third round growth share obligation or the Highlands projections based on actual growth through 2008 and the RMP build-out for Module 2. The rehabilitation share is the estimated number of existing substandard housing units in a municipality that are occupied by low or moderate income households, as determined by COAH (Appendix B. to N.J.A.C. 5:97). The prior round obligation is a municipality’s adjusted second round new construction Page 6 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz component brought forward to the third round (Appendix C. to N.J.A.C. 5:97). Third round housing plans must document how existing or proposed affordable housing units satisfy this prior round obligation. As stated above, the third round obligation is based on growth projections for the period of 2004 and 2018. Municipalities within the Highlands that are conforming with the RMP are required to use the aforementioned affordable housing ratios. Lebanon Borough has elected to utilize the Highlands Council’s household and employment projections. A more detailed explanation of how the third round growth share obligation is established is described later in the plan. AFFORDABILITY REQUIREMENTS Affordable housing is defined under New Jersey’s Fair Housing Act as a dwelling, either for sale or rent that is within the financial means of households of low or moderate income as income is measured within each housing region. The Borough of Lebanon is in COAH’s Region 3, which includes Hunterdon, Somerset and Middlesex counties. Moderate–income households are those earning between 50% and 80% of the regional median income. Low-income households are those with annual incomes that are between 30% and 50% of the regional median income. With changes to the law in July of 2008, COAH has also created a very low-income category, which is defined as households earning 30% or less of the regional median income. Through the Uniform Housing Affordability Controls (“UHAC”) at N.J.A.C. 5:80-26.3(d) and (e), COAH requires that the maximum rent for a qualified unit be affordable to households that earn no more than 60% of the median income for the region. The average rent must be affordable to households earning no more than 52% of the median income. The maximum sale prices for affordable units must be affordable to households that earn no more than 70% of the median income. The average sale price must be affordable to a household that earns no more than 55% of the median income. The regional median income is defined by COAH using the federal Department of Housing and Urban Development (“HUD”) income limits on an annual basis. In the spring of each year HUD releases updated regional income limits which COAH reallocates to its regions. It is from these income limits that the rents and sale prices for affordable units are derived. See Tables 1 through 3 for additional information. Table 1 provides the 2009 Income Limits for Region 3, however, COAH has published figures for up to eight person households; the most common figures have been supplied here. Income limits are updated annually and are available from COAH. The sample rents Page 7 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz and sale prices in Tables 2 and 3 are gross figures and do not account for the specified utility allowance. Table 1. 2009 Income Limits for Region 3 Household Income Levels 1 Person Household 2 Person Household 3 Person Household 4 Person household 5 Person Household Moderate Income $56,056 $64,064 $72,072 $80,080 $86,486 Low Income $35,035 $40,040 $45,045 $50,050 $54,054 Very Low Income $21,021 $24,024 $27,027 $30,030 $32,432 Source: COAH 2009 Regional Income Limits Table 2. Sample 2009 Affordable Rents for Region 3 Household Income Levels 1 Bedroom Unit Rent 2 Bedroom Unit Rent 3 Bedroom Unit Rent Moderate Income at 60% $1,126 $1,351 $1,562 Low Income at 46% $863 $1,036 $1,197 Very Low Income at 30% $563 $676 $781 Source: COAH Illustrative 2009 Low and Moderate Income Rents for New Construction and/or Reconstruction Table 3. Sample 2009 Affordable Sale Prices for Region 3 Household Income Levels 1 Bedroom Unit Purchase 2 Bedroom Unit Purchase 3 Bedroom Unit Purchase Moderate Income at 70% $118,243 $141,892 $163,964 Low Income at 50% $84,459 $101,351 $117,117 Very Low Income at 30% $50,676 $60,811 $70,270 Source: COAH Illustrative 2009 Low & Moderate Income Sales Prices for New Construction Page 8 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz HOUSING ELEMENT AND FAIR SHARE REQUIREMENTS In accordance with the MLUL, found at NJSA 40:55D-1, et seq., a municipal Master Plan must include a housing element as the foundation for the municipal zoning ordinance. Pursuant to the FHA, a municipality’s housing element must be designed to provide access to affordable housing to meet present and prospective housing needs, with particular attention to low and moderate income housing. The housing element must contain at least the following, as per the FHA at NJSA 52:27D-310: An inventory of the municipality’s housing stock by age, condition, purchase or rental value, occupancy characteristics, and type, including the number of units affordable to low and moderate income households and substandard housing capable of being rehabilitated; A projection of the municipality’s housing stock, including the probable future construction of low and moderate income housing, for the next ten years, taking into account, but not necessarily limited to, construction permits issued, approvals of applications for development, and probable residential development trends; An analysis of the municipality’s demographic characteristics, including, but not necessarily limited to, household size, income level, and age; An analysis of the existing and probable future employment characteristics of the municipality; A determination of the municipality’s present and prospective fair share of low and moderate income housing and its capacity to accommodate its present and prospective housing needs, including its fair share of low and moderate income housing; and A consideration of the lands most appropriate for construction of low and moderate income housing and of the existing structures most appropriate for conversion to, or rehabilitation for, low and moderate income housing, including a consideration of lands of developers who have expressed a commitment to provide low and moderate income housing. In addition, pursuant to COAH regulations (N.J.A.C. 5:97-2.3), the housing element and fair share plan must address the entire third round cumulative (1987-2018) affordable housing obligation consisting of the rehabilitation share, any remaining balance of the prior round obligation and the third round obligation based either on COAH’s projections or the Highlands RMP Adjusted Growth Projections. COAH’s regulations require the following documentation to be submitted with the housing element and fair share plan: Page 9 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz The minimum requirements of the FHA listed above (NJSA 52:27D-310); Household and employment projections created by COAH; Municipal rehabilitation, prior round and third round obligations; Descriptions of any credits intended to address any portion of the fair share obligation, including all information required by N.J.A.C. 5:97-4; Descriptions of any adjustments to any portion of the fair share obligation, including all information required by N.J.A.C. 5:97-5; Descriptions of any mechanisms intended to address the prior round obligation, the rehabilitation share and the third round obligation; An implementation schedule with a detailed timetable that demonstrates a “realistic opportunity” for the construction of affordable housing, as defined by N.J.A.C. 5:971.4. Draft and/or adopted ordinances necessary for the implementation of the mechanisms designed to satisfy the fair share obligation; A demonstration that existing zoning or planned changes in zoning provide adequate capacity to accommodate any proposed inclusionary developments, pursuant to N.J.A.C. 5:97-6.4; A demonstration of existing or planned water and sewer capacity sufficient to accommodate all proposed mechanisms; A spending plan, pursuant to N.J.A.C. 5:97-8.10; A map of all sites designated by the municipality for the production of low and moderate income housing; A copy of the most recently adopted Master Plan and, where required, the immediately preceding adopted Master Plan; A copy of the most recently adopted zoning ordinance; A copy of the most up-to-date tax maps; and Any other information required by N.J.A.C. 5:97 or requested by COAH or the Superior Court. Page 10 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz BOROUGH OF LEBANON AFFORDABLE HOUSING HISTORY An exclusionary zoning lawsuit against the Borough of Lebanon was filed by Pizzo on November 13, 2003. Via a Consent Order entered on January 3, 2005, the parties agreed that Lebanon Borough had not satisfied the 1987-1999 cumulative second round fair share obligation. After negotiation, the Borough adopted an Interim Housing Element and Fair Share Plan on March 6, 2006 which included an inclusionary development on the Pizzo Property. A Settlement Agreement between Pizzo and the Borough was executed on October 18, 2006. This inclusionary development is now under construction and known as Presidential Place on Block 3, Lots 1 and 3. On November 14, 2006 an Order of Superior Court was executed which approved the Settlement Agreement between the Borough and Pizzo and also established procedures for the satisfaction of the Borough’s remaining second and third round obligation. While this order did not include a Judgment of Repose, it did review and preliminarily approve the Borough’s prior round and third round affordable housing mechanisms. In response to COAH’s adoption of the third round rules, the Borough adopted a third round housing element and fair share plan on December 10, 2008. However, the Borough did not request approval of this third round housing element and fair share plan from either Superior Court or the Council on Affordable Housing. Page 11 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz GOALS AND OBJECTIVES In furtherance of the Borough’s efforts to ensure sound planning, this Plan is consistent with the Highland RMP’s goals and objectives pursuant to Lebanon Borough’s Initial Assessment report, which was submitted to the Highlands Council on March 10, 2009. The Borough’s housing element and fair share plan is consistent with the following goals, objectives, and policies related to Housing and Community Facilities identified in the RMP: To establish a region-wide, comprehensive approach to addressing housing needs in the Highlands Region, serving all age groups, income levels, and mobility options A comprehensive housing program addressing regional housing needs within the context of preserving the character and environmental integrity of the Highlands. An interagency partnership with the COAH in support of the achievement of both the resource protection requirements of the RMP and the municipal constitutional obligation, in “growth areas,” to provide a realistic opportunity for the construction of a fair share of affordable housing for low and moderate income households. Preserve and monitor existing stocks of affordable housing. To promote, where appropriate and permitted by the Land Use Capability Zone, center- based development approaches that address a mix of housing types, support mixed uses, and implement compact development approaches. To promote, where appropriate and permitted by the Land Use Capability Zone, affordable housing within new residential and mixed use development, redevelopment, or adaptive reuse projects. To encourage the targeting of new housing to areas with compatible existing densities and within walking distance of schools, employment, transit, and community facilities and services. To locate and maintain community facilities and services that support compact development patterns, shared services, and provide a high level of service. To require that conforming municipalities implement both the resource protection requirements of the RMP along with the New Jersey Supreme Court’s doctrine, in its Mount Laurel decisions, that every municipality in a “growth area” has a constitutional obligation to provide through its land use regulations, sound land use, and long range planning, a realistic opportunity for a fair share of its region’s present and prospective needs for housing for low and moderate income families. Page 12 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz To require that conforming municipalities update and adopt a housing element, fair share plan, and implementing ordinance(s) to reflect current conditions and resource protection requirements of the RMP. Page 13 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz HOUSING STOCK, DEMOGRAPHIC & EMPLOYMENT ANALYSIS In 2,000 there were 477 housing units in the Borough of Lebanon, of which 19 or 4% were vacant. Of the 458 occupied units, 78% were owner occupied and 22% were rented. Single-family detached and attached housing units dominate the housing stock in the Borough, comprising 88% of all housing units. Of the owner occupied units, 96% are single family detached or single family attached units. See Table 4, Housing Tenure by Number of Units in Structure, 2000 for additional information. Table 4. Housing Tenure by Number of Units in Structure, 2000 Type Owner Occupied Rental Vacant Total 1, detached 192 31 16 239 1, attached 155 25 3 183 2 9 23 0 32 3 or 4 2 17 0 19 5 to 9 2 2 0 4 10 to 19 0 0 0 0 20 to 49 0 0 0 0 50 or more 0 0 0 0 Mobile home 0 0 0 0 Boat, RV, van, etc. 0 0 0 0 Total 360 98 19 477 Source: 2000 US Census Table 5, Housing Units by Age of Structure, 2000, below illustrates the aging of the Borough’s housing stock. The largest periods of housing construction in the Borough occurred prior to 1939 with 34% of all units being constructed and between 1980 and 1989 with 32% of all units being constructed. The Borough’s construction rates for the decade between 2000 and 2009 are likely to meet or exceed these periods of high growth. However, it is notable that the recent high rates of residential growth are as a Page 14 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz result of the Borough’s two inclusionary projects – Presidential Place and the Heights of Hampton – being constructed. Table 5. Housing Units by Age of Structure, 2000 Year Built 1990 to 2000 1980 to 1989 1970 to 1979 1960 to 1969 1950 to 1959 1940 to 1949 1939 or earlier Totals Total Units % of Total Units OwnerOccupied % of Total Units RenterOccupied % of Total Units Vacant 53 11% 50 10% 0 0.0% N/A 152 32% 126 26% 26 5.5% N/A 21 4% 19 4% 2 0.4% N/A 25 5% 21 4% 4 0.8% N/A 41 9% 22 5% 17 3.6% N/A 25 5% 18 4% 7 1.5% N/A 160 34% 104 22% 42 8.8% N/A 477 360 98 19 Source: 2000 US Census The housing stock in Lebanon Borough is diverse in terms of its size. Only 8% of the units have less than four rooms, 60% of the units have 4 through 6 rooms and 31% of the units have 7 or more rooms. See Table 6, Housing Units by Number of Rooms, 2000 for additional information. Page 15 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 6. Housing Units by Number of Rooms, 2000 Rooms Number of Units Percent 1 rooms 5 1% 2 rooms 6 1.3% 3 rooms 31 6% 4 rooms 57 12% 5 rooms 149 31% 6 rooms 83 17% 7 rooms 76 16% 8 rooms 38 8% 9 or more rooms 32 7% Total 477 Source: 2000 US Census While home prices rose from 1990 to 2000, the majority of homes in the Borough remained at a value of less than $200,000 – 77% in 1990 as compared to 64% in 2000. Lower value units under $150,000 are of particular concern for affordable housing. In 2000, the median housing value in Lebanon Borough was $168,100, up from $166,800 in 1990. See Tables 7 and 8, Housing Values, Owner-Occupied Units, for additional information. Page 16 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 7. Housing Values, Owner-Occupied Units, 1990 Home Value Number Percent Less than $200,000 183 77% $200,000 to $300,000 51 21% $300,000 to $400,000 4 2% $400,000 to $500,000 0 0% $500,000 or more 9 0% Total 238 Note: Percentage totals may add up to greater than 100% due to rounding Source: 1990 US Census Table 8. Housing Values, Owner-Occupied Units, 2000 Home Value Number Percent Less than $200,000 215 64% $200,000 to $300,000 98 29% $300,000 to $400,000 17 5% $400,000 to $500,000 5 1% $500,000 or $750,000 0 0% $750,000 to $1,000,000 0 0% $1,000,000 or more 0 0% Total 335 Note: Percentage totals may add up to greater than 100% due to rounding Source: 2000 US Census Table 9, Comparison of Lebanon Borough / Hunterdon County Monthly Rental Cost, 2000, tabulates the differences in the gross costs of rental housing between Lebanon Borough and Hunterdon County. In 2000, Lebanon’s average monthly rent of $837 was nearly 12% higher than the County’s average monthly rent of $749. Page 17 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 9. Comparison of Lebanon Borough/Hunterdon County Monthly Rent, 2000 Contract Rent Lebanon Percent Hunterdon County Percent Less than $500 2 2% 687 10% $500 to $1000 56 57% 4,362 65% $1,000 to $1,500 27 28% 968 14% $1,500 to $2,000 5 5% 163 2% $2,000 or more - 0% 82 1% No Cash Rent 8 8% 414 6% Total 98 6,676 Note: Percentage totals may add up to greater than 100% due to rounding Source: 2000 US Census Between 1970 and 2000, Lebanon Borough grew in population and percent of population far less than the County. Consistent with the Borough’s growth in housing units, the period from 1980 and 1990 has the highest growth rate – 26%. In fact, during this decade the Borough’s population growth rate exceeded the County’s growth rate. Most recently, from 1990 through 2000, the Borough’s population increased by 3% where as the County’s population increased by 13%. See Table 10, Comparison of Lebanon Borough / Hunterdon County Population Growth for additional detail. Table 10. Comparison of Lebanon Borough / Hunterdon County Population Growth 1970 % Change 1980 % Change 1990 Borough of 885 1% 820 -7% 1,036 Lebanon Hunterdon 69,718 29% 87,361 25% 107,776 County Source: 1960, 1970, 1980, 1990 and 2000 US Census % Change 2000 % Change 26% 1,065 3% 23% 121,989 13% From 1990 through 2000 the Borough gained population in all age groups except for the under 5 years age group and the 25-34 years age group. These losses indicate that young families and young adults are choosing to leave the Borough. See Table 11, Age Distribution, 1990-2000 for additional detail. Page 18 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 11. Age Distribution, 1990-2000 Age Group 1990 Percent 2000 Percent Percent Change Under 5 96 9% 78 7% -19% 5 – 14 100 10% 139 13% 39% 15-24 125 12% 84 8% -33% 25-34 256 25% 152 14% -41% 35-44 179 17% 219 21% 22% 45-54 113 11% 169 16% 50% 55-64 80 8% 106 10% 33% 65 – 74 43 4% 69 6% 60% 75 + 44 4% 49 5% 11% Totals 1,036 1,065 Median Age N/A 39 Note: Percentage totals may add up to greater than 100% due to rounding Source: 1990 and 2000 US Census In 2000, there were 458 households in the Borough, with an average of 2.33 persons per household and 287 families with an average of 2.97 persons per family. As such, approximately 63% of the Borough’s households consisted of family households. Of the Borough’s family households, approximately 80% were comprised of married couples with or without children. In 2000, there was a lower percentage of households in Lebanon Borough with an income of $100,000 or greater than the County – 26% versus 38%. Similarly, the Borough’s median household of $68,542 was lower than that of the County’s median household income of $79,888. See Table 12, Household Income – Borough of Lebanon and Hunterdon County, 2000, for additional information. Page 19 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 12. Household Income – Borough of Lebanon and Hunterdon County, 2000 Percent Hunterdon County Households Percent 13 3% 2,277 5% $15,000 to $20,000 19 4% 1,308 3% $20,000 to $25,000 20 4% 1,079 2% $25,000 to $30,000 18 4% 1,358 3% $30,000 to $35,000 24 5% 1,457 3% $35,000 to $40,000 16 4% 1,504 3% $40,000 to $45,000 12 3% 1,623 4% $45,000 to $50,000 14 3% 1,517 3% $50,000 to $75,000 118 26% 8,199 19% $75,000 to $100,000 78 17% 7,207 16% 89 19% 8,543 20% 25 5% 3,927 9% $200,000 or more 11 2% 3,731 9% Totals 457 Lebanon Households Less than $15,000 $100,000 to $150,000 $150,000 to $200,000 43,730 Note: Percentage totals may add up to greater than 100% due to rounding Source: 2000 US Census Table 13, Distribution of Employment by Industry, Employed Lebanon Residents, 2000 shows the distribution of employment by industry for employed Borough residents. The education, health and social services industry captured the largest segment of the population at 17%, with manufacturing in second with 14% of the workforce and retail in third with 12% of the workforce.. Page 20 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 13. Distribution of Employment by Industry, Employed Lebanon Residents, 2000 Industry Number Percent - 0% Construction 46 7% Manufacturing 91 14% Wholesale Trade 9 1% Retail Trade 77 12% Transportation and Warehousing and Utilities 48 8% Information 52 8% 59 9% 72 11% Education, Health and Social Services 105 17% Arts, Entertainment, Recreation, Accommodation and Food Services 20 3% Public Administration 21 3% Other 32 5% Total 632 Agriculture, Forestry, Fishing and Hunting and Mining Finance, Insurance, Real Estate, and Rending and Leasing Professional, Scientific, Management, Administrative, and Waste Management Services Note: Percentage totals may add up to greater than 100% due to rounding Source: 2000 US Census Table 14, Employment by Occupation, Lebanon Residents, 2000 identifies the occupations of employed persons. While Lebanon Borough residents worked in a variety of industries in 2000, 43% of residents were employed in management, professional, and related occupations. An additional 33% of residents were employed in sales and office occupations. Page 21 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 14. Employment by Occupation, Lebanon Residents, 2000 Sector Jobs Number Percent 270 43% 54 9% 206 33% Farming, Fishing and Forestry Occupations 0 0% Construction, Extraction and Maintenance Occupations 54 9% Production, Transportation and Material Moving Occupations 48 8% Total 632 Management, Professional and Related Occupations Service Occupations Sales and Office Occupations Note: Percentage totals may add up to greater than 100% due to rounding Source: 2000 US Census Page 22 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz GROWTH TRENDS & PROJECTIONS The Borough can accommodate the household and job growth projected to occur during the third round (2004 through 2018) period based on the Highlands RMP build-out analysis under Module 2. RESIDENTIAL TRENDS AND PROJECTIONS There were 65 units created in Lebanon Borough between 2004 and 2009. This actual growth plus limited future growth will meet the residential projection of 66 units. NONRESIDENTIAL TRENDS AND PROJECTIONS Lebanon Borough has experienced moderate non-residential growth in the last decade consisting of office space. The Borough expects limited amounts of nonresidential development during the third round. According to the projections based on the Highlands RMP build-out analysis under Module 2, Lebanon Borough is expected to add 485 jobs between 2004 and 2018 (384 jobs from actual growth and 101 jobs from projected growth). Lebanon Borough finds the nonresidential projections based on the Highlands RMP build-out under Module 2 to be consistent with the Borough’s projections, which were based on certificates of occupancy issued and projects that are approved, pending or anticipated before the planning board. CAPACITY FOR GROWTH To assess if the Borough of Lebanon has the capacity to meet projections of residential and non-residential growth based on the Highlands RMP build-out analysis from Module 2, the Borough analyzed projected residential and non-residential growth through assessing development under construction, approved development and pending applications. The Borough also looked at potential future growth based on historic trends and whether the development would be consistent with the RMP. The analysis confirmed that the Borough has the capacity to meet the Highlands RMP growth projections of 66 housing units and 485 jobs, and thus to address the Highlands RMP adjusted growth share obligation of 30 third round affordable units. Page 23 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Availability of Existing and Planned Infrastructure Nearly all of the Borough of Lebanon is served by sewer and water. The remaining properties are served by individual well and septic systems. As per the Highlands RMP build-out analysis under Module 2, the combination of available public sewer and water capacity and individual well and septic systems will accommodate the projections. Anticipated Land Use Patterns Anticipated land use patterns range from single family infill development to multifamily residential development as part of the Borough’s inclusionary developments. Additionally, the Borough anticipates modest commercial growth, which is consistent with the projections. The Borough’s future land use patterns will be guided by the Highlands RMP and will be consistent with the projections based on the Highlands RMP build-out analysis completed for Module 2 of Highlands RMP Plan conformance. Borough Economic Development Policies The downtown and Route 22 corridor serve as the primary mechanisms for accommodating non-residential growth within the Borough’s boundaries. The Borough anticipates that modest amounts of nonresidential infill and redevelopment will occur in these areas. Constraints on Development The Borough has approximately 81% of its lands in the Existing Community Zone, meaning these lands are already developed. There are 48 acres in the Protection Zone, of which approximately 2/3 have “pre-Highlands Act” development approvals and are under construction. The rest of the lands within the Protection Zone will have the most stringent Highlands Environmental restrictions applied as a result of Highlands Conformance. The remaining open lands in the Borough representing two farm management units, approximately 57 acres total, are located in the Conservation Zone. One of the farms consisting of 37 acres has been permanently protected for agriculture and the other consisting of approximately 20 acres is located in the environmentally constrained sub-zone. As a result, there is virtually no new development potential in the Borough. Page 24 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz There are no known federal regulations that would hinder the development projected as part of the Borough’s adopted third round housing element and fair share plan. However, portions of the Borough are listed on both the State and National Register of Historic Places. All development that occurs within these areas will be required to conform to the State Historic Preservation Office’s process and guidelines. According to the Borough’s Master Plan, there do not appear to be any constraints on development related to land ownership issues, i.e., the necessity to consolidate lots, small lots sizes, or isolated lot development. Thus, existing land ownership patterns in the Borough have been taken into account in the anticipated growth as detailed in the Borough’s plan. According to NJ DEP data, there are 10 known contaminated sites in the Borough’s borders. The contaminated sites will not negatively affect the Borough’s ability to accommodate the projections or the proposed affordable housing sites. The Borough’s Master Plan, Land Use Ordinance and existing land review procedures provide the measures to address the development constraints noted above, as set forth at N.J.A.C. 5:97-3.13(b), and others as further land use regulations evolve. Page 25 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz CONSIDERATION OF LANDS APPROPRIATE FOR AFFORDABLE HOUSING As part of this housing element, the Borough of Lebanon considered land in the Highlands Planning Area that was appropriate for the construction of low and moderate income housing. The Borough is able to accommodate its remaining prior round obligation and its projected third round growth share obligation on the sites identified in this plan and supplemented by accessory apartment programs. The property owner of Block 4, Lot 1.03 has expressed interest in providing affordable housing. However, the Borough is not in a position to include the site in its Fair Share Plan at this time due to the timing of the inquiry and the fact that the Borough can satisfy the affordable housing obligation using existing programs supplemented by an accessory apartment program. Additional analyses will take place in the future if the need for additional affordable housing is triggered by future growth. If additional housing sites are required in the future, they will adhere to the Highlands RMP site consistency standards. Page 26 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz RELATIONSHIP TO HIGHLANDS RMP On December 8, 2009, Lebanon Borough submitted its petition for Highlands RMP Plan Conformance. As part of its petition, the Borough requested three RMP Updates. The only update impacting the Borough’s affordable housing sites was one which requested that the Presidential Place site (an inclusionary development) be changed from the Protection Zone to the Existing Community Zone in order to reflect the developed nature of the site. Page 27 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz LEBANON BOROUGH’S AFFORDABLE HOUSING PLAN Lebanon Borough will satisfy the rehabilitation obligation, the prior round obligation and the third round obligation consistent with COAH’s substantive rules, N.J.A.C. 5:97. CALCULATION OF THE AFFORDABLE HOUSING OBLIGATION The Rehabilitation Obligation The rehabilitation obligation is defined as the number of deficient housing units occupied by low and moderate income households within a municipality (N.J.A.C. 5:971.4). COAH calculates this figure using indices such as overcrowding of units constructed prior to 1950, incomplete kitchen facilities, incomplete plumbing facilities and the estimated number of low and moderate income households in the municipality. COAH has calculated Lebanon’s rehabilitation obligation to be 3 units. Please see Table 15. Calculation of the Rehabilitation Obligation, for additional information. Table 15. Calculation of the Rehabilitation Obligation. Overcrowding of units constructed prior to 1950 4 Incomplete plumbing facilities +0 Incomplete kitchen facilities +0 Low and moderate income share Rehabilitation share credit Rehabilitation Obligation *0.691 -0 3 units The Prior Round Obligation The prior round obligation can be defined as the cumulative 1987 through 1999 affordable housing obligation (N.J.A.C. 5:97-1.4). This time period corresponds to the first and second rounds of affordable housing. COAH has calculated Lebanon’s prior round obligation to be 34 units (Appendix C. to N.J.A.C. 5:97). Page 28 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz The Third Round Obligation COAH has taken a very different approach to calculating third round affordable housing obligations. The COAH third round obligation is initially based solely on COAH’s household and job projections for each municipality during the third round. For every five households, or units, projected during the third round, one affordable housing unit must be provided. For every 16 jobs projected, the Borough must provide one affordable housing unit. Municipalities within the Highlands that are conforming with the RMP are required to use the aforementioned affordable housing ratios; however, they may elect to utilize either COAH’s household and employment projections or the projections based on the RMP build-out under Module 2.The Borough of Lebanon has elected to utilize the projections based on the RMP build-out under Module 2 as the basis for its affordable housing obligation. COAH’s substantive rules require that a municipality plan for the affordable housing obligation generated by the projections; however, a municipality must provide affordable housing in proportion to its actual growth (N.J.A.C. 5:97-2.2(e)). The Highlands Council has projected the creation of 66 households (65 units of actual growth and 1 unit of projected growth) and 485 jobs (384 jobs of actual growth and 101 jobs of projected growth) in the Borough of Lebanon during the third round. Please see the Lebanon Borough Municipal Build-out Report submission to the Highlands Council for additional information. COAH’s substantive rules, N.J.A.C. 5:97-2.4, permit municipalities to exclude certain market and affordable units from the third round household projections. The Borough is eligible for two exclusions. The November 14, 2006 Judgment of Repose, and supported by the September 13, 2006 Report of the Special Master on the Fairness of the Settlement and Interim Compliance Plan, authorized both exclusions to the extent listed in Table 5. The third round obligation which the Borough must satisfy in the Housing Element and Fair Share Plan is 30 affordable units. Table 16 shows what the third round obligation is composed of: Page 29 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Table 16. Calculation of Highlands’ Projected Third Round Obligation Residential Actual Residential Growth (Units) (2004-2008) RMP Residential Build-out (Units) 65 1 Permitted COAH Exclusions Presidential Place (Pizzo) 65 Heights of Lebanon (Kaplan) 80 Total 0 Units Creating Growth Share 0 Residential Growth Share 0 Nonresidential Actual Non-Residential Growth (Jobs)(2004-2008) RMP Non-Residential Build-out (Jobs) 384.36 101 Permitted COAH Exclusions None 0 Total 0 Jobs Creating Growth Share 485.36 Nonresidential Growth Share 30.33 Total Third Round Obligation 30.33 SATISFACTION OF THE REHABILITATION OBLIGATION The Borough’s three unit rehabilitation obligation will be satisfied with new construction units as permitted by N.J.A.C. 5:97-6.2(b)7. The Borough will use two family rental units at the Coach House LLC development and one family rental unit at Presidential Place. The Coach House, LLC development is located on Block 6, Lots 14 and 14.01 along Main Street. The development was approved in April 2010 for two accessory apartments. The site is approximately .9 acres. The project will consist of one rebuilt single family detached home, one unit in the existing barn and six units in the existing multi-family building nearest Main Street. All units will remain under ownership by one entity and Page 30 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz will be for rent. Accessory apartments are particularly appropriate for satisfying the rehabilitation obligation since both programs require 10 year affordability controls rather than 30 years, as required by all other affordable housing programs. This project is unique in that there will be no owner occupied unit on the property; however, the single family home will serve as the principal use of the property, similar to a typical accessory apartment project. COAH defines an accessory apartment unit as the following (N.J.A.C. 5:97-1.4): “a self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site.” The affordable units in the Coach House LLC project will meet this definition with the exception of being located on the same site. However, the two properties shall be owned by the same entity for the life of the affordability controls to ensure that the affordable units remain related and accessory to the single family home on the property. The following restrictions shall be put in place to the project is consistent with the intent of the accessory apartment program. These restrictions are reflected in the Planning Board resolution and shall be incorporated into a deed restriction. 1. The affordable units must comply with the applicable COAH rules and Uniform Housing Affordability Control rules; 2. The affordable units must be for rent; 3. The affordable units must have affordability controls restricting them to being occupied by low or moderate income households for a period of 10 years; and 4. The two properties (Block 6, Lots 14 and 14.01) must remain in common ownership for a period of 10 years. The Borough did not provide a financial subsidy for the affordable units; instead the applicant was granted approval to increase the number of units in the multi-family building from four to six. Please see the prior round obligation discussion for details on Presidential Place. Page 31 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz SATISFACTION OF THE PRIOR ROUND OBLIGATION In addition to satisfying the total obligation of 34 units, the Borough must also adhere to a minimum rental obligation and maximum number of age-restricted units. Minimum Rental Obligation = 9 units .25 (prior round obligation – prior cycle credits– impact of the 20% cap – impact of the 1000 unit cap) =.25 (34-0-0-0) = 8.50, rounded up to 9 A rental unit available to the general public receives one rental bonus; An age-restricted unit receives a .33 rental bonus, but no more than 50 percent of the rental obligation shall receive a bonus for age-restricted units; and No rental bonus is granted in excess of the rental obligation. Maximum Age Restricted = 8 units .25 (prior round obligation + rehabilitation share – prior cycle credits – rehabilitation credits – impact of the 20% cap – impact of the 1,000 unit cap – transferred or proposed prior round RCAs) =.25 (34+3-3-0-0-9) = 8.50, rounded down to 8 The Borough has two prior round sites – Presidential Place and the Heights of Lebanon. Presidential Place Inclusionary Development Presidential Place (also known as the Pizzo Development) is located on Block 3, Lots 1 and 3. The subject site is located immediately north of Interstate 78 along Cokesbury Road. The site resulted from a builder’s remedy lawsuit which was settled on October 18, 2006. The site obtained site plan approval on March 14, 2007. The project includes a total 150 housing units, of which 120 will be market rate and 30 will be affordable rental units. The development is served by public water and sewer. The site is located in the Borough’s R-MF-AH2 zone district. It is also within the Planning Area of the Highlands Region and the Protection and Existing Community zones. Heights of Lebanon Inclusionary Development The Heights of Lebanon (also known as the Kaplan Development) is located on Block 10, Lot 2. The subject site is located at the south end of the Borough, adjacent to the railroad tracks and along Railroad Avenue. The project includes a total 120 housing units, of which 108 will be market rate and 12 will be affordable rental units. The development is Page 32 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz served by public water and sewer. The site is located in the Borough’s R-MF-AH zone district. It is also within the Planning Area of the Highlands Region and the Existing Community Environmentally Constrained Highlands subzone. The November 14, 2006 Superior Court Order granted a waiver of the COAH bedroom distribution requirements for this project to provide one less three bedroom unit than required. However, the granting of the waiver obligated Lebanon to “make best efforts to create one additional three bedroom unit in another development”. The Borough will continue to seek ways to create an additional three bedroom unit in its third round programs, such as the accessory apartment program. Prior Round Summary The Borough’s two previously approved inclusionary developments satisfies the entirety of the prior round obligation. The remaining units at Presidential Place will be used against the third round obligation. See Table 17, Affordable Units Meeting the 34 Unit Prior Round Obligation, for additional information. Development Senior Rental Table 17. Affordable Units Meeting the 34 Unit Prior Round Obligation Units Bonus Credits Total Credits Presidential Place (17 of 30) x 13 0 13 Heights of Lebanon x 12 9 21 25 9 34 Total SATISFACTION OF THE THIRD ROUND OBLIGATION The Borough will rely on remaining units at Presidential Place, one group home and an accessory apartment program to satisfy the 30 unit third round obligation. In addition to satisfying the total obligation, the Borough must also adhere to standards pertaining to minimum total family units, minimum rental obligation, minimum family rental units, a maximum age-restricted units, maximum bonus credits and minimum very low income units. Page 33 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Minimum Family Obligation = 15 units .50(third round affordable units) = .50(30) = 15 Minimum Rental Obligation = 8 units .25 (third round obligation) = .25 (30) = 7.50, rounded up to 8 Minimum Family Rental Obligation = 4 units .50(third round rental obligation) = .50(8) = 4 Maximum Age-restricted Units = 7 units .25 (third round obligation) = .25 (30) = 7.50, rounded down to 7 Maximum Bonus Credits = 7 credits .25 (third round obligation) = .25 (30) = 7.50, rounded down to 7 Minimum Very Low Income = 3 units Method 2: =0.13(Number of units created after July 17, 2009) = .13(23) = 2.99, rounded up to 3 Presidential Place The Borough will utilize 17 of the 30 family rental units, which were not used in the prior round, to satisfy a significant portion of the third round obligation. These units will satisfy the entire family rental obligation and four of the units will satisfy half of the rental obligation and the entire family rental obligation. Hunterdon Alliance The Hunterdon Alliance for the Mentally Ill owns and operates a community residence for the developmentally disabled is located 4 Knox Lane on Block 8, Lot 26. The facility, which has four bedrooms, is built and occupied. This project was approved in the November 14, 2006 Superior Court Order. Accessory Apartment Program The Borough is proposing a 3 unit accessory apartment program to satisfy a portion of the third round obligation. Lebanon Borough’s housing stock is appropriate for an Page 34 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz accessory apartment program due to the large size of the housing structures and the historic nature of the homes. All accessory apartments will be created where the lots are served by public water and sewer. The Borough’s program will comply with all regulations in N.J.A.C. 5:97-6.8, including but not limited to 10 year affordability controls and subsidies in the amount of $20,000 for a moderate income unit and $25,000 for a low income unit. The program will be administered by the Borough’s Administrative Agent. This program will provide the Borough a total of 3 credits toward the third round obligation and will be used to satisfy the family obligation. Pursuant to N.J.A.C. 5:973.5(a) rental units addressing the prior round rental obligation that do not have 30 year affordability controls are not eligible for rental bonus credits. Third Round Summary The Borough will rely on remaining units at Presidential Place, one group home and an accessory apartment program to satisfy the 30 unit third round obligation. See Table 18, Affordable Units Meeting the 30 Unit Third Round Obligation, for additional information. Presidential Place Units Bonus Credits Total Credits x x 16 7 23 x 4 0 4 x 3 0 3 23 7 30 Hunterdon Alliance Accessory Apartments x TOTAL Senior Rental Project Family Table 18. Affordable Units Meeting the 30 Unit Third Round Obligation IMPLEMENTATION SCHEDULE Table 19, Implementation Schedule, outlines the Borough’s timeline for meeting its third round fair share obligation. As shown below, the Borough anticipates that it will provide an adequate number of affordable units / bonus credits by 2013 (earliest initial growth share evaluation). Page 35 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz Program 2010 2011 2012 2013 2014 2015 2016 2017 2018 Table 19. Implementation Schedule Total Credits Presidential Place (inc. bonus credits) 23 0 0 0 0 0 0 0 0 24 Hunterdon Alliance 4 0 0 0 0 0 0 0 0 4 Accessory Apartments 0 1 1 1 0 0 0 0 0 3 27 1 1 1 0 0 0 0 0 30 Total Units/Bonuses Page 36 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz COST GENERATION The Borough of Lebanon’s Land Development Ordinance has been reviewed to eliminate unnecessary cost generating standards. Such expedition may consist of, but is not limited to, scheduling of pre-application conferences and special monthly public hearings. Furthermore, development applications containing affordable housing shall be reviewed for consistency with the Land Development Ordinance, Residential Site Improvement Standards (N.J.A.C. 5:21-1 et seq) and the mandate of the Fair Housing Act regarding unnecessary cost generating features. The focus of such development review shall not be whether the site is appropriately zoned. The Borough of Lebanon shall comply with COAH’s requirements for unnecessary cost generating requirements, N.J.A.C. 5:97-10,2, procedures for development applications containing affordable housing, N.J.A.C. 5:97-10.3, and requirements for special studies and escrow accounts where an application contains affordable housing, N.J.A.C. 5:97-10.4. Page 37 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz MONITORING In accordance with N.J.A.C. 5:96-11, beginning two years from substantive certification, the Boroughs of Lebanon shall complete the annual monitoring reports of the Affordable Housing Trust Fund and of the affordable housing units and programs. Furthermore, the Borough will assist COAH with the biennial plan evaluation, pursuant to N.J.A.C. 5:96-10, where the actual growth of housing units and jobs is compared to the provision of affordable housing. If upon any biennial review the difference between the number of affordable units constructed or provided in a municipality and the number of units required pursuant to N.J.A.C 5:97-2.4 results in a pro-rated production shortage of 10 percent or greater, the Borough is not adhering to its implementation schedule pursuant to N.J.A.C. 5:97- 3.2(a)4, or the mechanisms addressing the projected third round obligation no longer present a realistic opportunity for the creation of affordable housing, the Borough may be required by COAH to amend its plan in conformance with N.J.A.C. 5:96-14 to address the affordable housing obligation set forth in N.J.A.C. 5:97-2.5. Page 38 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz FAIR SHARE ORDINANCES AND AFFIRMATIVE MARKETING The Borough of Lebanon has prepared an Affirmative Marketing and Fair Share Ordinance in accordance with COAH’s substantive rules, N.J.A.C. 5:97-9, and the Uniform Housing Affordability Controls (hereinafter “UHAC”) at N.J.A.C. 5:80-26. The Fair Share Ordinance will govern the establishment of affordable units in the Borough, as well as regulating the occupancy of such units. The Borough’s Fair Share Ordinance covers the phasing of affordable units, the low/moderate income split, bedroom distribution, occupancy standards, affordability controls, establishing rents and prices, affirmative marketing, income qualification, etc. The affirmative marketing plan is designed to attract buyers and/or renters of all majority and minority groups, regardless of race, creed, color, national origin, ancestry, marital or familial status, gender, affectional or sexual orientation, disability, age or number of children to the affordable units located in the Borough. Additionally, the affirmative marketing plan is intended to target those potentially eligible persons who are least likely to apply for affordable units and who reside in the Borough’s housing region, Region 3, consisting of Hunterdon, Somerset and Middlesex counties. The affirmative marketing plan includes regulations for qualification of income eligibility, price and rent restrictions, bedroom distribution, affordability control periods, and unit marketing in accordance to N.J.A.C. 5:80-26. All newly created affordable units will comply with the thirty-year affordability control required by UHAC, N.J.A.C. 5:8026-5 and 5:80-26-11. This plan must be adhered to by all private, non-profit or municipal developers of affordable housing units and must cover the period of deed restriction or affordability controls on each affordable unit. The costs of implementing the affirmative marketing plan (i.e., the costs of advertising the affordable units, etc.) are the responsibilities of the developers of the affordable units. This requirement is included in the Borough’s fair share ordinances and shall be a condition of any municipal development approval. Page 39 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz AFFORDABLE HOUSING TRUST FUND The Borough proposes to adopt a development fee ordinance to permit collection of residential development fees equal to 1.5% of the equalized assessed value of new residential construction and nonresidential development fees equal to 2.5% of the equalized assessed value of new nonresidential construction. The Borough’s spending plan, which discusses anticipated revenues, collection of revenues, and the use of revenues, was prepared in accordance to N.J.A.C. 5:97-8.10. All collected revenues will be placed in the Borough’s Affordable Housing Trust fund and will be dispensed for the use of affordable housing activities. The Borough may use the funds in the trust fund for any of the below listed items, pursuant to N.J.A.C. 5:97-8.7(a): Rehabilitation program; New construction of affordable housing units and related development costs; in the case of inclusionary developments, eligible costs shall be pro-rated based on the proportion of affordable housing units included in the development; Extensions or improvements of roads and infrastructure directly serving affordable housing development sites; in the case of inclusionary developments, costs shall be pro-rated based on the proportion of affordable housing units included in the development; Acquisition and/or improvement of land to be used for affordable housing; Purchase of existing market rate or affordable housing for the purpose of maintaining or implementing affordability controls, such as in the event of foreclosure; Accessory apartment or market to affordable programs; ECHO housing and related repair or unit relocation costs; Green building strategies designed to be cost-saving for low- and moderate income households, either for new construction that is not funded by other sources, or as part of necessary maintenance or repair of existing units; Maintenance and repair of affordable housing units; Repayment of municipal bonds issued to finance low- and moderate-income housing activity; and Any other activity as specified in the approved spending plan. Page 40 Amended Third Round Housing Element and Fair Share Plan Borough of Lebanon, Hunterdon County May 2010 Clarke Caton Hintz However, the Borough is required to fund the programs in the certified Housing Element and Fair Share Plan, as well as provide affordability assistance. At least 30% of collected development fees, excluding expenditures made from the inception of the fund to June 2, 2008 on all new construction, previously funded RCAs and rehabilitation activities, shall be used to provide affordability assistance to low- and moderate-income households in affordable units included in a municipal Fair Share Plan. Additionally, no more than 20% of the revenues collected from development fees each year, exclusive of the fees used to fund an RCA, shall be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to prepare or implement a rehabilitation program, a new construction program, a housing element and fair share plan, and/or an affirmative marketing program. Page 41 Clarke Caton Hintz Architecture Fair Share Plan Appendices Planning Landscape Architecture 100 Barrack Street Trenton NJ 08608 clarkecatonhintz.com Borough of Lebanon, Hunterdon County, New Jersey Tel: 609 883 8383 Fax: 609 883 4044 John Clarke, FAIA Philip Caton, FAICP Carl Hintz, AICP, ASLA John Hatch, AIA George Hibbs, AIA Brian Slaugh, AICP Michael Sullivan, AICP May 2010 Clarke Caton Hintz Table of Contents Appendix A. Planning Board Resolution adopting the Amended Housing Element and Fair Share Plan Appendix B. Governing Body Resolution Endorsing the Amended Housing Element and Fair Share Plan Appendix C. Revised Workbook D and Supporting Documentation Appendix D. Coach House LLC Approving Resolution Appendix E. Draft Accessory Apartment Ordinance Appendix F. Draft Affordable Housing Ordinance Appendix G. Draft Development Fee Ordinance Appendix H. Governing Body Resolution Requesting Approval of Development Fee Ordinance Appendix I. Spending Plan Appendix J. Governing Body Resolution Requesting Approval of Spending Plan Appendix K. Governing Body Resolution of Intent to Bond Appendix L. Draft Housing Liaison Ordinance and Appointing Resolution Appendix A. Planning Board Resolution adopting the Amended Housing Element and Fair Share Plan Appendix B. Governing Body Resolution Endorsing the Amended Housing Element and Fair Share Plan Appendix C. Revised Workbook D and Supporting Documentation Summary of Adjusted Growth Share Projection Based On Land Capacity (Introduction to Workbook D) Municipality Code: 1018 Municipality Name: Lebanon Borough Muni Code Lookup This workbook is to be used for determining the projected Municipal Growth Share Obligation by comparing growth projected by COAH with actual growth based on certificates of occupancy that have been issued from 2004 through 2008 and the RMP build-out analysis conducted under Module 2 of the Highlands RMP conformance process. Data must be entered via the "tabs" found at the bottom of this spreadsheet which may also be accessed through the highlighted links found throughout the spreadsheet. This workbook consists of five worksheets that, when combined on this introduction page, provide a tool that allows the user to enter exclusions permitted by N.J.A.C. 5:97-2.4 to determine the projected Growth Share Obligation. COAHgenerated Growth Projections included in Appendix F(2) of the revised Third Round Rules, Highlands Council build-out figures based on Mod 2 Reports and actual growth based on COs as published by the DCA Division of Codes and Standards in The Construction Reporter are imported automatically upon entry of the Municipal Code. Click Here to enter COAH and Highlands Council data Municipalities seeking to request a revision to the COAH-generated growth projections based on opting in to the Highlands RMP may do so by providing this comparative analysis of COAH and RMP build-out projections. After completing this analysis, the growth projections may be revised based on the Highlands RMP build-out analysis. Actual growth must first be determined using the Actual Growth worksheet. The RMP adjustment applies only to RMP capacity limitations that are applied to growth projected from 2009 through 2018. Click Here to Enter Actual Growth to Date Click Here to Enter Permitted Exclusions Click Here to View Detailed Results from Analysis Summary Of Worksheet Comparison COAH Projected Growth Share Residential Growth Residential Exclusions Net Residential Growth Residential Growth Share Non-Residential Growth Non-Residential Exclusions Net Non- Residential Growth Non-Residential Growth Share Total Growth Share Growth Share Based on Highlands RMP 10 145 -135 0.00 66 145 -79 0.00 270 0 270 16.88 485 0 485 30.34 17 30 Highlands RMP Projection does not necessitate a revision to the projections published by COAH. Please file this Workbook and use the COAH growth Projections in Appendix F2 of COAH's rules. Growth Projection Adjustment - Actual Growth Actual Growth 01/01/04 to 12/31/08 Municipality Name: Lebanon Borough Residential COs Issued As Published by D C S 65 Per Municipal Records (if different) 65 Qualified Residential Demolitions Note: To qualify as an offsetting residential demolition, the unit must be the primary residence of the household for which the demolition permit has been issued, it had to be occupied by that owner for at least one year prior to the issuance of the demolition permit, it has to continue to be occupied by that household after the re-build and there can be no change in use associated with the property. (See N.J.A.C. 5:97-2.5(a)1.v.) A Certification Form must be completed and submitted for each qualifying demolition. Non-residential CO's by Use Group B M F S H A1 A2 A3 A4 A5 E I R1 Total Get Demolition Certification Form Square Feet Square Feet Added (COs Square Feet Added (COs Jobs Per Lost Issued) per Issued) As 1,000 SF Demolition Municipal Published by Records Permits Issued) DCS (if different) 2.8 399,873 137,272 1.7 0 0 1.2 0 0 1.0 0 0 1.6 0 0 1.6 0 0 3.2 0 0 1.6 0 0 3.4 0 0 2.6 0 0 0.0 0 0 2.6 0 0 1.7 0 0 399,873 137,272 0 Return to Main Page (Workbook D Intro) Proceed to COAH Data and RMP Module 2 Build-out Data Proceed to Exclusions Tab Total Jobs 384.36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 384.36 Affordable and Market-Rate Units Excluded from Growth Municipality Name: Lebanon Borough Prior Round Affordable Units NOT included in Inclusionary Developments Built Post 1/1/04 Number of COs Issued and/or Projected Development Type Supportive/Special Needs Housing Accessory Apartments Municipally Sponsored and 100% Affordable Assisted Living Other Total 0 Market and Affordable Units in Prior Round Inclusionary Development Built post 1/1/04 N.J.A.C. 5:97-2.4(a) (Enter Y for yes in Rental column if affordable units are rentals Rentals? (Y/N) y Y Development Name Presidential Place (Pizzo) Heights of Lebanon (Kaplan) Total Units 65 80 0 0 0 145 Total Affordable Market Units Units Excluded 52 13 52 68 12 68 0 0 0 120 25 120 Market Units Jobs and Affordable Units Built as a result of post 1/1/04 Non-Residential Development N.J.A.C. 5:97-2.4(b) Affordable Units Provided Development Name Total Return to Main Page (Workbook D Intro) Return to COAH Data and RMP Module 2 Build-out Data Return to Actual Growth View Detailed Results from Analysis Permitted Jobs Exclusion 0 0 0 0 0 0 COAH Growth Projections and Highlands Buildout Data Must be used in all submissions Municipality Name: Lebanon Borough The COAH columns have automatically been populated with growth projections from Appendix F(2) found at the back of N.J.A.C. 5:97-1 et seq. The Highlands RMP Build-out columns have automatically been populated with residential and non-residential build-out figures from the municipal build-out results with resource and utility constraints found in Table 4 of the RMP Module 2 report. Always check with the Highlands Council for updates. If figures have been updated, enter updated build-out results. Use the Tabs at the bottom of this page or the links within the page to toggle to the exclusions worksheet of this workbook. After entering all relevant exclusions, toggle back to the introduction page to view the growth share obligation that has been calculated based on each approach. COAH Projections Highlands RMP Buildout Analysis From Appendix F(2) found at the back of N.J.A.C. 5:97-1 et seq. Allocating Growth To Municipalities Residential From Module 2 Table 4 – Municipal Build-Out Results With Resource and Utility Constraints Updated as of October 2, 2009 Preservation Area Non-Residential 10 270 Residential units – Sewered Septic System Yield Total Residential Units Non-Residential Jobs – Sewered Planning Area Totals 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 1 1 1 0 0 101 101 101 101 Note: Always check with the Highlands Council for updated municipal Build-out numbers. Enter build-out figures in the appropriate boxes only if revised figures have been provided by the Highlands Council. Click Here to link to current Mod 2 Build-Out Reports Proceed to Enter Prior Round Exclusions Retrun to Enter Actual Growth Return to Main Page (Workbook D Intro) Comparative Anaylsis Detail For Lebanon Borough The following chart applies the exclusions permitted pursuant to N.J.A.C 5:97-2.4 to both the COAH growth projections and the projected growth that results from the Highlands RMP build-out analysis plus actual growth for the period January 1, 2004 through December 31, 2008. COAH Projected Growth From COAH Appendix F(2) Highlands NonResidential Residential 10 270 Residential Exclusions per 5:97-2.4(a) from "Exclusions" tab COs for prior round affordable units built or projected to be built Inclusionary Development Supportive/Special Needs Housing Accessory Apartments Municipally Sponsored or 100% Affordable Assisted Living Other Market Units in Prior Round Inclusionary development built post 1/1/04 Inclusionary Development Supportive/Special Needs Housing Accessory Apartments Municipally Sponsored or 100% Affordable Assisted Living Other 0 0 0 0 0 Market Units in Prior Round Inclusionary development built post 1/1/04 120 0 0 Net Growth Projection -135 270 Projected Growth Share (Residential divided by 5 and jobs divided by 16) 0.00 16.88 Total Projected Growth Share Obligation RMP Build-out results from Mod2 Table 4 Actual Growth from COs issued 2004 through 2008 1 101 65 384 Residential Exclusions per 5:97-2.4(a) from "Exclusions" tab COs for prior round affordable units built or projected to be built 25 Subtract the following NonResidential Exclusions per 5:97-2.4(b) from "Exclusions" tab Affordable units Associated Jobs NonResidential Residential Subtract the following NonResidential Exclusions per 5:97-2.4(b) from "Exclusions" tab Affordable units Associated Jobs Net Growth Projection Projected Growth Share (Residential divided by 5 and jobs divided by 16) Affordable 17 Units Return to Main Page (Workbook D Intro) Return to COAH Data and RMP Module 2 Build-out Data Return to Actual Growth Return to Exclusions 25 0 0 0 0 0 0 120 0 0 -79 485 0.00 30.34 Affordable 30 Units Appendix D. Coach House LLC Approving Resolution Appendix E. Draft Accessory Apartment Ordinance Ordinance ___ Draft Ordinance Creating the Accessory Apartment Program Borough of Lebanon, Hunterdon County, New Jersey Accessory Apartments. 1. Accessory apartments shall be permitted on all single-family detached residential lots. 2. The Borough shall provide a subsidy of $20,000 to each property owner creating a moderate income accessory apartment and $25,000 to each property owner creating a low income accessory apartment. Said subsidy shall be provided within 60 days of the date which the certificate of occupancy for the accessory apartment is issued and the deed restriction is in place. 3. Each accessory apartment unit shall be for rent. 4. Each accessory apartment shall, for a period of at least 10 years, be rented only for such rents as shall be affordable to individuals and families of low or moderate income, consistent with COAH’s substantive rules (N.J.A.C. 5:97) and the Uniform Housing Affordability Control Rules (N.J.A.C. 5:8026). 5. There shall be a recorded deed or declaration of covenants and restrictions applying to each accessory apartment, running with the land, consistent with COAH’s substantive rules (N.J.A.C. 5:97) and the Uniform Housing Affordability Control Rules (N.J.A.C. 5:80-26). 6. The accessory apartment may be located in and part of the principal dwelling, or in a garage, carriage house, barn or other accessory building. 7. No accessory apartment shall receive Board approval or zoning permit unless the property owner demonstrates that an adequate potable water supply is available. 8. There shall be no more than two accessory apartments per single-family dwelling on each lot. 9. The accessory apartment shall be in full compliance with all applicable health and construction codes prior to occupancy. 10. Each accessory apartment shall have living/sleeping space, cooking facilities, a kitchen sink and complete sanitary facilities for the exclusive use of its occupants. It shall consist of no less than two rooms, one of which shall be a full bathroom. 11. Each accessory apartment shall have a private entrance with direct access to the outdoors. 12. In the case of an accessory apartment created illegally or without proper permits which the property owner desires to legitimize as an accessory apartment under this chapter, all of the requirements of this chapter in addition to meeting COAH criteria shall apply. 13. The accessory apartment shall be affirmatively marketed to the housing region, consistent with COAH’s substantive rules (N.J.A.C. 5:97) and the Uniform Housing Affordability Control Rules (N.J.A.C. 5:80-26).. 14. Adequate parking for the accessory apartment shall be provided in a manner which shall be compatible with the established neighborhood character. May 2010 Draft Page 1 Appendix F. Draft Affordable Housing Ordinance Lebanon Borough, Hunterdon County Draft Affordable Housing Ordinance AN ORDINANCE OF THE BOROUGH OF LEBANON, COUNTY OF HUNTERDON AND STATE OF NEW JERSEY AMENDING CHAPTER __ "AFFORDABLE HOUSING" OF THE CODE OF THE BOROUGH OF LEBANON TO ADDRESS THE REQUIREMENTS OF THE COUNCIL ON AFFORDABLE HOUSING'S THRID ROUND RULES WHEREAS, the New Jersey Council on Affordable Housing ("COAH") has promulgated rules, set forth at N.J.A.C. 5:96 and 5:97, concerning the substantive and procedural requirements for obtaining third round substantive certification of the Borough's Housing Element and Fair Share Plan; and WHEREAS, on (Insert Date), the Court issued Hampton Borough a third round judgment of repose; and WHEREAS, as part of its review and grant of the Borough's repose, the Court requires that the Borough's affordable housing ordinances be updated and brought into compliance with COAH’s current rules. NOW THEREFORE, BE IT ORDAINED by the Borough Committee of the Borough of Lebanon, County of Hunterdon and State of New Jersey, that the "Code of the Borough of Lebanon" ("Code") is hereby amended as follows: Section 1. Chapter __, entitled "Affordable Housing," Deleted and Replaced. Chapter __ "Affordable Housing" of the Code is hereby deleted in its entirety and replaced with a new Chapter __ "Affordable Housing," which shall read as follows: Chapter __ AFFORDABLE HOUSING ARTICLE I General Program Purposes, Procedures § __-1. Affordable Housing Obligation. A. This section of the Borough Code sets forth regulations regarding the low and moderate income housing units in the Borough consistent with the provisions known as the “Substantive Rules of the New Jersey Council on Affordable Housing for the period beginning June 2, 2008 with amendments through October 20, 2008”, N.J.A.C. 5:97 et seq., the Uniform Housing Affordability Controls (“UHAC”), N.J.A.C. 5:80-26.1 et seq., and the Borough's constitutional obligation to provide a fair share of affordable housing for low and moderate income households. In addition, this section applies requirements for very low income housing as established in P.L. 2008, c.46 (the "Roberts Bill"). B. This Ordinance is intended to assure that low- and moderate-income units ("affordable units") are created with controls on affordability over time and that low- and moderate-income households shall occupy these units. This Ordinance shall apply except where inconsistent with applicable law. C. The Lebanon Borough Planning Board has adopted a Housing Element and Fair Share Plan pursuant to the Municipal Land Use Law at N.J.S.A. 40:55D-1, et seq. The Plan has also been endorsed by the Borough Committee of the Borough of Lebanon. The Fair Share Plan describes the ways the Borough shall address its fair share for low- and moderate-income housing as determined by the Council on Affordable Housing (COAH) and documented in the Housing Element. D. This Ordinance implements and incorporates the Fair Share Plan and addresses the requirements of N.J.A.C. 5:97, as may be amended and supplemented. E. The Borough shall file monitoring reports with COAH in accordance with N.J.A.C. 5:96, tracking the status of the implementation of the Housing Element and Fair Share Plan. Any plan evaluation report of the Housing Element and Fair Share Plan and monitoring prepared by COAH in accordance with N.J.A.C. 5:96 shall be available to the public at the Lebanon Borough Municipal Building 405 Mine Road, Asbury, New Jersey, or from COAH at 101 South Broad Street, Trenton, New Jersey. § __-2. Definitions. meanings: As used herein the following terms shall have the following “Accessory apartment” means a self-contained residential dwelling unit with a kitchen, sanitary facilities, sleeping quarters and a private entrance, which is created within an existing home, or through the conversion of an existing accessory structure on the same site, or by an addition to an existing home or accessory building, or by the construction of a new accessory structure on the same site. “Act” means the Fair Housing Act of 1985, P.L. 1985, c. 222 (N.J.S.A. 52:27D-301 et seq.). “Adaptable” means constructed in compliance with the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7. “Administrative agent” means the entity responsible for the administration of affordable units in accordance with this ordinance, N.J.A.C. 5:96, N.J.A.C. 5:97 and N.J.A.C. 5:8026.1 et seq. “Affirmative marketing” means a regional marketing strategy designed to attract buyers and/or renters of affordable units pursuant to N.J.A.C. 5:80-26.15. 2 “Affordability average” means the average percentage of median income at which restricted units in an affordable housing development are affordable to low- and moderate-income households. “Affordable” means, a sales price or rent within the means of a low- or moderate-income household as defined in N.J.A.C. 5:97-9; in the case of an ownership unit, that the sales price for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.6, as may be amended and supplemented, and, in the case of a rental unit, that the rent for the unit conforms to the standards set forth in N.J.A.C. 5:80-26.12, as may be amended and supplemented. “Affordable development” means a housing development all or a portion of which consists of restricted units. “Affordable housing development” means a development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100% affordable development. “Affordable housing program(s)” means any mechanism in a municipal Fair Share Plan prepared or implemented to address a municipality’s fair share obligation. “Affordable unit” means a housing unit proposed or created pursuant to the Act, credited pursuant to N.J.A.C. 5:97-4, and/or funded through an affordable housing trust fund. “Agency” means the New Jersey Housing and Mortgage Finance Agency established by P.L. 1983, c. 530 (N.J.S.A. 55:14K-1, et seq.). “Age-restricted unit” means a housing unit designed to meet the needs of, and exclusively for, the residents of an age-restricted segment of the population such that: 1) all the residents of the development where the unit is situated are 62 years or older; or 2) at least 80% of the units are occupied by one person that is 55 years or older; or 3) the development has been designated by the Secretary of the U.S. Department of Housing and Urban Development as “housing for older persons” as defined in Section 807(b)(2) of the Fair Housing Act, 42 U.S.C. § 3607. “Assisted living residence” means a facility licensed by the New Jersey Department of Health and Senior Services to provide apartment-style housing and congregate dining and to assure that assisted living services are available when needed for four or more adult persons unrelated to the proprietor and that offers units containing, at a minimum, one unfurnished room, a private bathroom, a kitchenette and a lockable door on the unit entrance. “Certified household” means a household that has been certified by an Administrative Agent as a low-income household or moderate-income household. 3 “COAH” means the Council on Affordable Housing, which is in, but not of, the Department of Community Affairs of the State of New Jersey, that was established under the New Jersey Fair Housing Act (N.J.S.A. 52:27D-301 et seq.). “DCA” means the State of New Jersey Department of Community Affairs. “Deficient housing unit” means a housing unit with health and safety code violations that require the repair or replacement of a major system. A major system includes weatherization, roofing, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement and/or load bearing structural systems. “Developer” means any person, partnership, association, company or corporation that is the legal or beneficial owner or owners of a lot or any land proposed to be included in a proposed development including the holder of an option to contract or purchase, or other person having an enforceable proprietary interest in such land. “Development” means the division of a parcel of land into two or more parcels, the construction, reconstruction, conversion, structural alteration, relocation, or enlargement of any use or change in the use of any building or other structure, or of any mining, excavation or landfill, and any use or change in the use of any building or other structure, or land or extension of use of land, for which permission may be required pursuant to N.J.S.A. 40:55D-1 et seq. "Fair Share Plan" means the plan that describes the mechanisms, strategies and the funding sources, if any, by which the Borough proposes to address its affordable housing obligation as established in the Housing Element, including the draft ordinances necessary to implement that plan, and addresses the requirements of N.J.A.C. 5:97-3. "Housing Element" means the portion of the Borough's Master Plan, required by the Municipal Land Use Law ("MLUL"), N.J.S.A. 40:55D-28b(3) and the Act, that includes the information required by N.J.A.C. 5:97-2.3 and establishes the Borough's fair share obligation. “Inclusionary development” means a development containing both affordable units and market rate units. This term includes, but is not necessarily limited to: new construction, the conversion of a non-residential structure to residential and the creation of new affordable units through the reconstruction of a vacant residential structure. “Low-income household” means a household with a total gross annual household income equal to 50% or less of the median household income. “Low-income unit” means a restricted unit that is affordable to a low-income household. “Major system” means the primary structural, mechanical, plumbing, electrical, fire protection, or occupant service components of a building which include but are not 4 limited to, weatherization, roofing, plumbing (including wells), heating, electricity, sanitary plumbing (including septic systems), lead paint abatement or load bearing structural systems. “Market-rate units” means housing not restricted to low- and moderate-income households that may sell or rent at any price. “Median income” means the median income by household size for the applicable county, as adopted annually by COAH. “Moderate-income household” means a household with a total gross annual household income in excess of 50% but less than 80% of the median household income. “Moderate-income unit” means a restricted unit that is affordable to a moderate-income household. “Non-exempt sale” means any sale or transfer of ownership other than the transfer of ownership between husband and wife; the transfer of ownership between former spouses ordered as a result of a judicial decree of divorce or judicial separation, but not including sales to third parties; the transfer of ownership between family members as a result of inheritance; the transfer of ownership through an executor’s deed to a class A beneficiary and the transfer of ownership by court order. “Random selection process” means a process by which currently income-eligible households are selected for placement in affordable housing units such that no preference is given to one applicant over another except for purposes of matching household income and size with an appropriately priced and sized affordable unit (e.g., by lottery). “Regional asset limit” means the maximum housing value in each housing region affordable to a four-person household with an income at 80% of the regional median as defined by COAH’s adopted Regional Income Limits published annually by COAH. “Rehabilitation” means the repair, renovation, alteration or reconstruction of any building or structure, pursuant to the Rehabilitation Subcode, N.J.A.C. 5:23-6. “Rent” means the gross monthly cost of a rental unit to the tenant, including the rent paid to the landlord, as well as an allowance for tenant-paid utilities computed in accordance with allowances published by DCA for its Section 8 program. In assisted living residences, rent does not include charges for food and services. “Restricted unit” means a dwelling unit, whether a rental unit or ownership unit, that is subject to the affordability controls of N.J.A.C. 5:80-26.1, as may be amended and supplemented, but does not include a market-rate unit financed under UHORP or MONI. 5 “UHAC” means the Uniform Housing Affordability Controls set forth in N.J.A.C. 5:8026.1 et seq. “Very low-income household” means a household with a total gross annual household income equal to 30% or less of the median household income. “Very low-income unit” means a restricted unit that is affordable to a very low-income household. “Weatherization” means building insulation (for attic, exterior walls and crawl space), siding to improve energy efficiency, replacement storm windows, replacement storm doors, replacement windows and replacement doors, and is considered a major system for rehabilitation. § __-3. New Construction. The following requirements shall apply to all new or planned developments that contain low- and moderate- income housing units. A. Phasing. Final site plan or subdivision approval shall be contingent upon the affordable housing development meeting the following phasing schedule for low and moderate income units whether developed in a single phase development, or in a multi-phase development: Maximum Percentage of Market-Rate Units Completed 25 25+1 50 75 90 Minimum Percentage of Lowand Moderate- Income Units Completed 0 10 50 75 100 B. Design. In inclusionary developments, to the extent possible, low- and moderateincome units shall be integrated with the market units. C. Payments-in-lieu and off-site construction. The standards for the collection of payments-in-lieu of constructing affordable units or standards for constructing affordable units off-site, shall be in accordance with N.J.A.C. 5:97-6.4. D. Utilities. Affordable units shall utilize the same type of heating source as market units within the affordable development. E. Low/Moderate Split and Bedroom Distribution of Affordable Housing Units: 1. The fair share obligation shall be divided equally between low- and moderate- income units, except that where there is an odd number of affordable housing units, the extra unit shall be a low income unit. 6 2. In each affordable development, at least 50% of the restricted units within each bedroom distribution shall be low-income units. 3. Within rental developments, of the total number of affordable rental units, at least 13% shall be affordable to very low income households. 4. Affordable developments that are not age-restricted shall be structured in conjunction with realistic market demands such that: 5. F. (a) The combined number of efficiency and one-bedroom units shall be no greater than 20% of the total low- and moderate-income units; (b) At least 30% of all low- and moderate-income units shall be two bedroom units; (c) At least 20% of all low- and moderate-income units shall be three bedroom units; and (d) The remaining units may be allocated among two and three bedroom units at the discretion of the developer. Affordable developments that are age-restricted shall be structured such that the number of bedrooms shall equal the number of age-restricted low- and moderate-income units within the inclusionary development. The standard may be met by having all one-bedroom units or by having a two-bedroom unit for each efficiency unit. Accessibility Requirements: 1. The first floor of all restricted townhouse dwelling units and all restricted units in all other multistory buildings shall be subject to the technical design standards of the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14. 2. All restricted townhouse dwelling units and all restricted units in other multistory buildings in which a restricted dwelling unit is attached to at least one other dwelling unit shall have the following features: (a) An adaptable toilet and bathing facility on the first floor; (b) An adaptable kitchen on the first floor; (c) An interior accessible route of travel on the first floor; 7 (d) An interior accessible route of travel shall not be required between stories within an individual unit; (e) An adaptable room that can be used as a bedroom, with a door or the casing for the installation of a door, on the first floor; and (f) An accessible entranceway as set forth at P.L. 2005, c. 350 (N.J.S.A. 52:27D-311a et seq.) and the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14, or evidence that the Borough has collected funds from the developer sufficient to make 10% of the adaptable entrances in the development accessible: (1) Where a unit has been constructed with an adaptable entrance, upon the request of a disabled person who is purchasing or will reside in the dwelling unit, an accessible entrance shall be installed. (2) To this end, the builder of restricted units shall deposit funds within the Borough of Lebanon’s affordable housing trust fund sufficient to install accessible entrances in 10% of the affordable units that have been constructed with adaptable entrances. (3) The funds deposited under paragraph (2) herein, shall be used by the Borough for the sole purpose of making the adaptable entrance of any affordable unit accessible when requested to do so by a person with a disability who occupies or intends to occupy the unit and requires an accessible entrance. (4) The developer of the restricted units shall submit a design plan and cost estimate for the conversion from adaptable to accessible entrances to the Construction Official of the Borough of Lebanon. (5) Once the Construction Official has determined that the design plan to convert the unit entrances from adaptable to accessible meet the requirements of the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14, and that the cost estimate of such conversion is reasonable, payment shall be made to the Borough of Lebanon’s affordable housing trust fund in care of the Chief Financial Officer who shall ensure that the funds are deposited into the affordable housing trust fund and appropriately earmarked. 8 (6) Full compliance with the foregoing provisions shall not be required where an entity can demonstrate that it is site impracticable to meet the requirements. Determinations of site impracticability shall be in compliance with the Barrier Free Subcode, N.J.A.C. 5:23-7 and N.J.A.C. 5:97-3.14. G. Maximum Rents and Sales Prices. 1. In establishing rents and sales prices of affordable housing units, the administrative agent shall follow the procedures set forth in UHAC and in COAH, utilizing the regional income limits established by COAH. 2. The maximum rent for restricted rental units within each affordable development shall be affordable to households earning no more than 60% of median income, and the average rent for restricted low- and moderate-income units shall be affordable to households earning no more than 52% of median income. 3. The developers and/or municipal sponsors of restricted rental units shall establish at least one rent for each bedroom type for both low-income and moderate-income units. (a) At least 13% of all low- and moderate-income rental units shall be affordable to households earning no more than 30% of median income. 4. The maximum sales price of restricted ownership units within each affordable development shall be affordable to households earning no more than 70% of median income, and each affordable development must achieve an affordability average of 55% for restricted ownership units; in achieving this affordability average, moderate-income ownership units must be available for at least three different prices for each bedroom type, and low-income ownership units must be available for at least two different prices for each bedroom type. 5. In determining the initial sales prices and rents for compliance with the affordability average requirements for restricted units other than assisted living facilities, the following standards shall be met: (a) A studio or efficiency unit shall be affordable to a one-person household; (b) A one-bedroom unit shall be affordable to a one and one-half person household; 9 6. (c) A two-bedroom unit shall be affordable to a three-person household; (d) A three-bedroom unit shall be affordable to a four and one-half person household; and (e) A four-bedroom unit shall be affordable to a six-person household. In determining the initial rents for compliance with the affordability average requirements for restricted units in assisted living facilities, the following standards shall be met: (a) A studio or efficiency unit shall be affordable to a one-person household; (b) A one-bedroom unit shall be affordable to a one and one-half person household; and (c) A two-bedroom unit shall be affordable to a two-person household or to two one-person households. 7. The initial purchase price for all restricted ownership units shall be calculated so that the monthly carrying cost of the unit, including principal and interest (based on a mortgage loan equal to 95% of the purchase price and the Federal Reserve H.15 rate of interest), taxes, homeowner and private mortgage insurance and condominium or homeowner association fees do not exceed 28% of the eligible monthly income of the appropriate size household as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the price shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented. 8. The initial rent for a restricted rental unit shall be calculated so as not to exceed 30% of the eligible monthly income of the appropriate household size as determined under N.J.A.C. 5:80-26.4, as may be amended and supplemented; provided, however, that the rent shall be subject to the affordability average requirement of N.J.A.C. 5:80-26.3, as may be amended and supplemented. 9. The price of owner-occupied low- and moderate-income units may increase annually based on the percentage increase in the regional median income limit for each housing region. In no event shall the maximum resale price established by the administrative agent be lower than the last recorded purchase price. 10 10. The rent of low- and moderate-income units may be increased annually based on the percentage increase in the Housing Consumer Price Index for the United States. This increase shall not exceed 9% in any one year. Rents for units constructed pursuant to low- income housing tax credit regulations shall be indexed pursuant to the regulations governing lowincome housing tax credits. 11. Tenant-paid utilities that are included in the utility allowance shall be so stated in the lease and shall be consistent with the utility allowance approved by DCA for its Section 8 program. § __-4. Condominium and Homeowners Association Fees. For any affordable housing unit that is part of a condominium association and/or homeowners association, the Master Deed shall reflect that the association fee assessed for each affordable housing unit shall be established at 100% of the market rate fee. § __-5. Reserved. § __-6. Reserved. § __-7. Reserved. § __-8. Reserved. § __-9. Reserved. ARTICLE II Affordable Unit Controls and Requirements § __-10. Purpose. The requirements of this section apply to all developments that contain affordable housing units, including any currently unanticipated future developments that will provide low- and moderate- income housing units. § __-11. Affirmative Marketing. A. The Borough shall adopt by resolution an Affirmative Marketing Plan, subject to approval of the Court, compliant with N.J.A.C. 5:80-26.15, as may be amended and supplemented. B. The affirmative marketing plan is a regional marketing strategy designed to attract buyers and/or renters of all majority and minority groups, regardless of race, creed, color, national origin, ancestry, marital or familial status, gender, 11 affectional or sexual orientation, disability, age or number of children to housing units which are being marketed by a developer, sponsor or owner of affordable housing. The affirmative marketing plan is also intended to target those potentially eligible persons who are least likely to apply for affordable units in that region. It is a continuing program that directs all marketing activities toward COAH Housing Region 3 and covers the period of deed restriction. C. The affirmative marketing plan shall provide a regional preference for all households that live and/or work in COAH Housing Region 3, comprised of Hunterdon, Middlesex and Somerset Counties. D. The Administrative Agent designated by the Borough shall assure the affirmative marketing of all affordable units is consistent with the Affirmative Marketing Plan for the municipality. E. In implementing the affirmative marketing plan, the Administrative Agent shall provide a list of counseling services to low- and moderate-income applicants on subjects such as budgeting, credit issues, mortgage qualification, rental lease requirements, and landlord/tenant law. F. The affirmative marketing process for available affordable units shall begin at least four months prior to the expected date of occupancy. G. The costs of advertising and affirmative marketing of the affordable units shall be the responsibility of the developer, sponsor or owner, unless otherwise determined or agreed to by the Borough of Lebanon. § __-12. Occupancy Standards. A. B. In referring certified households to specific restricted units, to the extent feasible, and without causing an undue delay in occupying the unit, the Administrative Agent shall strive to: 1. Provide an occupant for each bedroom; 2. Provide children of different sex with separate bedrooms; and 3. Prevent more than two persons from occupying a single bedroom. Additional provisions related to occupancy standards (if any) shall be provided in the municipal Operating Manual. § __-13. Selection of Occupants of Affordable Housing Units. A. The administrative agent shall use a random selection process to select occupants of low- and moderate- income housing. 12 B. A waiting list of all eligible candidates will be maintained in accordance with the provisions of N.J.A.C. 5:80-26 et seq. § __-14. Control Periods for Restricted Ownership Units and Enforcement Mechanisms. A. Control periods for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.5, and each restricted ownership unit shall remain subject to the controls on affordability for a period of at least 30 years. B. Rehabilitated owner-occupied single family housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years. C. The affordability control period for a restricted ownership unit shall commence on the date the initial certified household takes title to the unit. D. The affordability controls set forth in this Ordinance shall remain in effect despite the entry and enforcement of any judgment of foreclosure with respect to restricted ownership units. E. A restricted ownership unit shall be required to obtain a Continuing Certificate of Occupancy or a certified statement from the Construction Official stating that the unit meets all code standards upon the first transfer of title that follows the expiration of the applicable minimum control period provided under N.J.A.C. 5:80-26.5(a), as may be amended and supplemented. § __-15. Price Restrictions for Restricted Ownership Units, Homeowner Association Fees and Resale Prices. Price restrictions for restricted ownership units shall be in accordance with N.J.A.C. 5:8026.1, as may be amended and supplemented, including: A. The initial purchase price for a restricted ownership unit shall be approved by the Administrative Agent. B. The Administrative Agent shall approve all resale prices, in writing and in advance of the resale, to assure compliance with the foregoing standards. C. The method used to determine the condominium association fee amounts and special assessments shall be indistinguishable between the low- and moderateincome unit owners and the market unit owners. D. The owners of restricted ownership units may apply to the Administrative Agent to increase the maximum sales price for the unit on the basis of capital improvements. Eligible capital improvements shall be those that render the unit suitable for a larger household or the addition of a bathroom. 13 § __-16. Buyer Income Eligibility. A. Buyer income eligibility for restricted ownership units shall be in accordance with N.J.A.C. 5:80-26.1, as may be amended and supplemented, such that lowincome ownership units shall be reserved for households with a gross household income less than or equal to 50% of median income and moderate-income ownership units shall be reserved for households with a gross household income less than 80% of median income. B. The Administrative Agent shall certify a household as eligible for a restricted ownership unit when the household is a low-income household or a moderateincome household, as applicable to the unit, and the estimated monthly housing cost for the particular unit (including principal, interest, taxes, homeowner and private mortgage insurance and condominium or homeowner association fees, as applicable) does not exceed 33% of the household’s certified monthly income. § __-17. Limitations on indebtedness secured by ownership unit; subordination. A. Prior to incurring any indebtedness to be secured by a restricted ownership unit, the administrative agent shall determine in writing that the proposed indebtedness complies with the provisions of this section. B. With the exception of original purchase money mortgages, during a control period neither an owner nor a lender shall at any time cause or permit the total indebtedness secured by a restricted ownership unit to exceed 95% of the maximum allowable resale price of that unit, as such price is determined by the administrative agent in accordance with N.J.A.C.5:80-26.6(b). § __-18. Control Periods for Restricted Rental Units. A. Control periods for restricted rental units shall be in accordance with N.J.A.C. 5:80-26.11, and each restricted rental unit shall remain subject to the controls on affordability for a period of at least 30 years. B. Rehabilitated renter-occupied housing units that are improved to code standards shall be subject to affordability controls for a period of 10 years. C. Deeds of all real property that include restricted rental units shall contain deed restriction language. The deed restriction shall have priority over all mortgages on the property, and the deed restriction shall be filed by the developer or seller with the records office of the County of Hunterdon. A copy of the filed document shall be provided to the Administrative Agent within 30 days of the receipt of a Certificate of Occupancy. 14 D. A restricted rental unit shall remain subject to the affordability controls of this Ordinance, despite the occurrence of any of the following events: 1. Sublease or assignment of the lease of the unit; 2. Sale or other voluntary transfer of the ownership of the unit; or 3. The entry and enforcement of any judgment of foreclosure. 15 § __-19. Price Restrictions for Rental Units; Leases. A. A written lease shall be required for all restricted rental units, except for units in an assisted living residence, and tenants shall be responsible for security deposits and the full amount of the rent as stated on the lease. A copy of the current lease for each restricted rental unit shall be provided to the Administrative Agent. B. No additional fees or charges shall be added to the approved rent (except, in the case of units in an assisted living residence, to cover the customary charges for food and services) without the express written approval of the Administrative Agent. C. Application fees (including the charge for any credit check) shall not exceed 5% of the monthly rent of the applicable restricted unit and shall be payable to the Administrative Agent to be applied to the costs of administering the controls applicable to the unit as set forth in this Ordinance. § __-20. Tenant Income Eligibility. A. B. Tenant income eligibility shall be in accordance with N.J.A.C. 5:80-26.13, as may be amended and supplemented, and shall be determined as follows: 1. Very low-income rental units shall be reserved for households with a gross household income less than or equal to 30% of median income. 2. Low-income rental units shall be reserved for households with a gross household income less than or equal to 50% of median income. 3. Moderate-income rental units shall be reserved for households with a gross household income less than 80% of median income. The Administrative Agent shall certify a household as eligible for a restricted rental unit when the household is a very low-income, low-income household or a moderate-income household, as applicable to the unit, and the rent proposed for the unit does not exceed 35% (40% for age-restricted units) of the household’s eligible monthly income as determined pursuant to N.J.A.C. 5:80-26.16, as may be amended and supplemented; provided, however, that this limit may be exceeded if one or more of the following circumstances exists: 1. The household currently pays more than 35% (40% for households eligible for age-restricted units) of its gross household income for rent, and the proposed rent will reduce its housing costs; 2. The household has consistently paid more than 35% (40% for households eligible for age-restricted units) of eligible monthly income for rent in the past and has proven its ability to pay; 16 C. 3. The household is currently in substandard or overcrowded living conditions; 4. The household documents the existence of assets with which the household proposes to supplement the rent payments; or 5. The household documents proposed third-party assistance from an outside source such as a family member in a form acceptable to the Administrative Agent and the owner of the unit. The applicant shall file documentation sufficient to establish the existence of the circumstances in (b)1 through 5 above with the Administrative Agent, who shall counsel the household on budgeting. § __-21. Conversions. Each housing unit created through the conversion of a non-residential structure shall be considered a new housing unit and shall be subject to the affordability controls for a new housing unit. § __-22. Reserved. § __-23. Reserved. § __-24. Reserved. ARTICLE III Administration § __-25. Municipal Housing Liaison. A. The position of Municipal Housing Liaison for the Borough of Lebanon is hereby established. The Municipal Housing Liaison shall be appointed by duly adopted resolution of the Borough Committee and be subject to the approval of the Court. B. The Municipal Housing Liaison must be either a full-time or part-time employee of the Borough of Lebanon. C. The Municipal Housing Liaison must meet COAH's requirements for qualifications, including initial and periodic training. D. The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for the Borough of Lebanon, 17 including the following responsibilities which may not be contracted out to the Administrative Agent: 1. Serving as the municipality’s primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents and interested households; 2. The implementation of the Affirmative Marketing Plan and affordability controls. 3. When applicable, supervising any contracting Administrative Agent. 4. Monitoring the status of all restricted units in the Borough of Lebanon’s Fair Share Plan; 5. Compiling, verifying and submitting annual reports as required by COAH; 6. Coordinating meetings with affordable Administrative Agents, as applicable; and 7. Attending continuing education opportunities on affordability controls, compliance monitoring and affirmative marketing as offered or approved by COAH. housing providers and § __-26. Administrative Agent. A. The Borough shall designate by resolution of the Borough Committee, subject to the approval of the Court, one or more Administrative Agents to administer newly constructed affordable units in accordance with N.J.A.C. 5:96, N.J.A.C. 5:97 and UHAC. B. An Operating Manual shall be provided by the Administrative Agent(s) to be adopted by resolution of the governing body and subject to approval of the Court. The Operating Manuals shall be available for public inspection in the Office of the Municipal Clerk and in the office(s) of the Administrative Agent(s). C The Administrative Agent shall perform the duties and responsibilities of an administrative agent as are set forth in UHAC and which are described in full detail in the Operating Manual, including those set forth in N.J.A.C. 5:80-26.14, 16 and 18 thereof, which includes: 1. Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH; 18 2. Affirmative Marketing; 3. Household Certification; 4. Affordability Controls; 5. Records retention; 6. Resale and re-rental; 7. Processing requests from unit owners; and 8. Enforcement, although the ultimate responsibility for retaining controls on the units rests with the municipality. 9. The Administrative Agent shall, as delegated by the Borough Committee, have the authority to take all actions necessary and appropriate to carry out its responsibilities, hereunder. § __-27. Enforcement of Affordable Housing Regulations. A. Upon the occurrence of a breach of any of the regulations governing the affordable unit by an Owner, Developer or Tenant, the municipality shall have all remedies provided at law or equity, including but not limited to foreclosure, tenant eviction, municipal fines, a requirement for household recertification, acceleration of all sums due under a mortgage, recoupment of any funds from a sale in the violation of the regulations, injunctive relief to prevent further violation of the regulations, entry on the premises, and specific performance. B. After providing written notice of a violation to an Owner, Developer or Tenant of a low- or moderate-income unit and advising the Owner, Developer or Tenant of the penalties for such violations, the municipality may take the following action against the Owner, Developer or Tenant for any violation that remains uncured for a period of 60 days after service of the written notice: 1. The municipality may file a court action pursuant to N.J.S.A. 2A:58-11 alleging a violation, or violations, of the regulations governing the affordable housing unit. If the Owner, Developer or Tenant is found by the court to have violated any provision of the regulations governing affordable housing units the Owner, Developer or Tenant shall be subject to one or more of the following penalties, at the discretion of the court: (a) A fine of not more than $500.00 or imprisonment for a period not to exceed 90 days, or both. Each and every day that the violation continues or exists shall be considered a separate and specific violation of these provisions and not as a continuing offense; 19 (b) In the case of an Owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment into the Borough of Lebanon Affordable Housing Trust Fund of the gross amount of rent illegally collected; (c) In the case of an Owner who has rented his or her low- or moderate-income unit in violation of the regulations governing affordable housing units, payment of an innocent tenant's reasonable relocation costs, as determined by the court. 2. The municipality may file a court action in the Superior Court seeking a judgment, which would result in the termination of the Owner's equity or other interest in the unit, in the nature of a mortgage foreclosure. Any judgment shall be enforceable as if the same were a judgment of default of the First Purchase Money Mortgage and shall constitute a lien against the low- and moderate-income unit. C. Such judgment shall be enforceable, at the option of the municipality, by means of an execution sale by the Sheriff, at which time the low- and moderate-income unit of the violating Owner shall be sold at a sale price which is not less than the amount necessary to fully satisfy and pay off any First Purchase Money Mortgage and prior liens and the costs of the enforcement proceedings incurred by the municipality, including attorney's fees. The violating Owner shall have the right to possession terminated as well as the title conveyed pursuant to the Sheriff's sale. D. The proceeds of the Sheriff's sale shall first be applied to satisfy the First Purchase Money Mortgage lien and any prior liens upon the low- and moderateincome unit. The excess, if any, shall be applied to reimburse the municipality for any and all costs and expenses incurred in connection with either the court action resulting in the judgment of violation or the Sheriff's sale. In the event that the proceeds from the Sheriff's sale are insufficient to reimburse the municipality in full as aforesaid, the violating Owner shall be personally responsible for and to the extent of such deficiency, in addition to any and all costs incurred by the municipality in connection with collecting such deficiency. In the event that a surplus remains after satisfying all of the above, such surplus, if any, shall be placed in escrow by the municipality for the Owner and shall be held in such escrow for a maximum period of two years or until such earlier time as the Owner shall make a claim with the municipality for such. Failure of the Owner to claim such balance within the two-year period shall automatically result in a forfeiture of such balance to the municipality. Any interest accrued or earned on such balance while being held in escrow shall belong to and shall be paid to the municipality, whether such balance shall be paid to the Owner or forfeited to the municipality. 20 E. Foreclosure by the municipality due to violation of the regulations governing affordable housing units shall not extinguish the restrictions of the regulations governing affordable housing units as the same apply to the low- and moderateincome unit. Title shall be conveyed to the purchaser at the Sheriff's sale, subject to the restrictions and provisions of the regulations governing the affordable housing unit. The Owner determined to be in violation of the provisions of this plan and from whom title and possession were taken by means of the Sheriff's sale shall not be entitled to any right of redemption. F. If there are no bidders at the Sheriff's sale, or if insufficient amounts are bid to satisfy the First Purchase Money Mortgage and any prior liens, the municipality may acquire title to the low- and moderate-income unit by satisfying the First Purchase Money Mortgage and any prior liens and crediting the violating owner with an amount equal to the difference between the First Purchase Money Mortgage and any prior liens and costs of the enforcement proceedings, including legal fees and the maximum resale price for which the low- and moderate-income unit could have been sold under the terms of the regulations governing affordable housing units. This excess shall be treated in the same manner as the excess which would have been realized from an actual sale as previously described. G. Failure of the low- and moderate-income unit to be either sold at the Sheriff's sale or acquired by the municipality shall obligate the Owner to accept an offer to purchase from any qualified purchaser which may be referred to the Owner by the municipality, with such offer to purchase being equal to the maximum resale price of the low- and moderate-income unit as permitted by the regulations governing affordable housing units. H. The Owner shall remain fully obligated, responsible and liable for complying with the terms and restrictions of governing affordable housing units until such time as title is conveyed from the Owner. § __-28. Appeals. Appeals from all decisions of an Administrative Agent designated pursuant to this Ordinance shall be filed in writing with the Executive Director of COAH. Section 2. Repealer. All ordinances or Code provisions or parts thereof inconsistent with this Ordinance are hereby repealed to the extent of such inconsistency. Section 3. Severability. Each section, subsection, sentence, clause and phrase of this Ordinance is declared to be an independent section, subsection, sentence, clause and phrase, and the finding or holding of any Court of competent jurisdiction that any such portion of this Ordinance is unConstitutional, void or ineffective for any cause or reason, shall not affect any other portion of this Ordinance. 21 Section 4. Effective Date. This ordinance shall take effect upon its passage and publication, as required by law. The ordinance published herewith was introduced and passed upon first reading at a meeting of the Borough Committee of the Borough of Lebanon, in the County of Hunterdon, State of New Jersey, held on (Insert Date). It will be further considered for final passage, after public hearing thereon, at a meeting of the Borough Committee to be held in the meeting room of the Municipal Building, 405 Mine Road, Asbury on (Insert Date) at 7:00 p.m., and during the week prior and up to and including the date of such meeting, copies of said ordinance will be made available at the Clerk’s Office to the members of the general public who shall request the same. __________________________________ Diane Pflugfelder, R.M.C., Clerk 22 Appendix G. Draft Development Fee Ordinance Ordinance ___ Draft Development Fee Ordinance Lebanon Borough, Hunterdon County, New Jersey 1. 2. 3. Purpose a) In Holmdel Builder’s Association V. Holmdel Boroughship, 121 N.J. 550 (1990), the New Jersey Supreme Court determined that mandatory development fees are authorized by the Fair Housing Act of 1985 (the Act), N.J.S.A. 52:27d-301 et seq., and the State Constitution, subject to the Council on Affordable Housing’s (COAH’s) adoption of rules. b) Pursuant to P.L.2008, c.46 section 8 (C. 52:27D-329.2) and the Statewide Non-Residential Development Fee Act (C. 40:55D-8.1 through 8.7), COAH is authorized to adopt and promulgate regulations necessary for the establishment, implementation, review, monitoring and enforcement of municipal affordable housing trust funds and corresponding spending plans. Municipalities that are under the jurisdiction of the Council or court of competent jurisdiction and have a COAH-approved spending plan may retain fees collected from non-residential development. c) This ordinance establishes standards for the collection, maintenance, and expenditure of development fees pursuant to COAH’s regulations and in accordance P.L.2008, c.46, Sections 8 and 32-38. Fees collected pursuant to this ordinance shall be used for the sole purpose of providing low- and moderate-income housing. This ordinance shall be interpreted within the framework of COAH’s rules on development fees, codified at N.J.A.C. 5:97-8. Basic requirements a) This ordinance shall not be effective until approved by COAH pursuant to N.J.A.C. 5:965.1. b) Lebanon Borough shall not spend development fees until COAH has approved a plan for spending such fees in conformance with N.J.A.C. 5:97-8.10 and N.J.A.C. 5:96-5.3. Definitions a) The following terms, as used in this ordinance, shall have the following meanings: i. “Affordable housing development” means a development included in the Housing Element and Fair Share Plan, and includes, but is not limited to, an inclusionary development, a municipal construction project or a 100 percent affordable development. ii. “COAH” or the “Council” means the New Jersey Council on Affordable Housing established under the Act which has primary jurisdiction for the administration of housing obligations in accordance with sound regional planning consideration in the State. May 2010 Draft Page 1 iii. “Development fee” means money paid by a developer for the improvement of property as permitted in N.J.A.C. 5:97-8.3. iv. “Developer” means the legal or beneficial owner or owners of a lot or of any land proposed to be included in a proposed development, including the holder of an option or contract to purchase, or other person having an enforceable proprietary interest in such land. v. “Equalized assessed value” means the assessed value of a property divided by the current average ratio of assessed to true value for the municipality in which the property is situated, as determined in accordance with sections 1, 5, and 6 of P.L.1973, c.123 (C.54:1-35a through C.54:1-35c). vi. “Green building strategies” means those strategies that minimize the impact of development on the environment, and enhance the health, safety and well-being of residents by producing durable, low-maintenance, resource-efficient housing while making optimum use of existing infrastructure and community services. 4. Residential Development fees a) Imposed fees i. Residential developers, except for developers of the types of development specifically exempted below, shall pay a fee of one and a half percent of the equalized assessed value for residential development provided no increased density is permitted. ii. When an increase in residential density pursuant to N.J.S.A. 40:55D-70d(5) (known as a “d” variance) has been permitted, developers may be required to pay a development fee of six percent of the equalized assessed value for each additional unit that may be realized. However, if the zoning on a site has changed during the two-year period preceding the filing of such a variance application, the base density for the purposes of calculating the bonus development fee shall be the highest density permitted by right during the two-year period preceding the filing of the variance application. Example: If an approval allows four units to be constructed on a site that was zoned for two units, the fees could equal one and a half percent of the equalized assessed value on the first two units; and the specified higher percentage up to six percent of the equalized assessed value for the two additional units, provided zoning on the site has not changed during the two-year period preceding the filing of such a variance application. b) Eligible exactions, ineligible exactions and exemptions for residential development i. May 2010 Draft Affordable housing developments, developments where the developer is providing for the construction of affordable units elsewhere in the municipality, and developments Page 2 where the developer has made a payment in lieu of on-site construction of affordable units shall be exempt from development fees. ii. Developments that have received preliminary or final site plan approval prior to the adoption of a municipal development fee ordinance shall be exempt from development fees, unless the developer seeks a substantial change in the approval. Where a site plan approval does not apply, a zoning and/or building permit shall be synonymous with preliminary or final site plan approval for this purpose. The fee percentage shall be vested on the date that the building permit is issued. iii. Owner-occupied residential structures demolished and replaced as a result of a fire, flood, or natural disaster shall be exempt from paying a development fee. 5. Non-residential Development fees a) Imposed fees i. Within all zoning districts, non-residential developers, except for developers of the types of development specifically exempted, shall pay a fee equal to two and one-half (2.5) percent of the equalized assessed value of the land and improvements, for all new non-residential construction on an unimproved lot or lots. ii. Non-residential developers, except for developers of the types of development specifically exempted, shall also pay a fee equal to two and one-half (2.5) percent of the increase in equalized assessed value resulting from any additions to existing structures to be used for non-residential purposes. iii. Development fees shall be imposed and collected when an existing structure is demolished and replaced. The development fee of two and a half percent (2.5%) shall be calculated on the difference between the equalized assessed value of the preexisting land and improvement and the equalized assessed value of the newly improved structure, i.e. land and improvement, at the time final certificate of occupancy is issued. If the calculation required under this section results in a negative number, the non-residential development fee shall be zero. b) Eligible exactions, ineligible exactions and exemptions for non-residential development i. The non-residential portion of a mixed-use inclusionary or market rate development shall be subject to the two and a half (2.5) percent development fee, unless otherwise exempted below. ii. The 2.5 percent fee shall not apply to an increase in equalized assessed value resulting from alterations, change in use within existing footprint, reconstruction, renovations and repairs. May 2010 Draft Page 3 iii. Non-residential developments shall be exempt from the payment of non-residential development fees in accordance with the exemptions required pursuant to P.L.2008, c.46, as specified in the Form N-RDF “State of New Jersey Non-Residential Development Certification/Exemption” Form. Any exemption claimed by a developer shall be substantiated by that developer. iv. A developer of a non-residential development exempted from the non-residential development fee pursuant to P.L.2008, c.46 shall be subject to it at such time the basis for the exemption no longer applies, and shall make the payment of the nonresidential development fee, in that event, within three years after that event or after the issuance of the final certificate of occupancy of the non-residential development, whichever is later. v. 6. If a property which was exempted from the collection of a non-residential development fee thereafter ceases to be exempt from property taxation, the owner of the property shall remit the fees required pursuant to this section within 45 days of the termination of the property tax exemption. Unpaid non-residential development fees under these circumstances may be enforceable by Lebanon Borough as a lien against the real property of the owner. Collection procedures a) Upon the granting of a preliminary, final or other applicable approval, for a development, the applicable approving authority shall direct its staff to notify the construction official responsible for the issuance of a building permit. b) For non-residential developments only, the developer shall also be provided with a copy of Form N-RDF “State of New Jersey Non-Residential Development Certification/Exemption” to be completed as per the instructions provided. The developer of a non-residential development shall complete Form N-RDF as per the instructions provided. The construction official shall verify the information submitted by the non-residential developer as per the instructions provided in the Form N-RDF. The Tax assessor shall verify exemptions and prepare estimated and final assessments as per the instructions provided in Form N-RDF. c) The construction official responsible for the issuance of a building permit shall notify the local tax assessor of the issuance of the first building permit for a development which is subject to a development fee. d) Within 90 days of receipt of that notice, the municipal tax assessor, based on the plans filed, shall provide an estimate of the equalized assessed value of the development. e) The construction official responsible for the issuance of a final certificate of occupancy notifies the local assessor of any and all requests for the scheduling of a final inspection on property which is subject to a development fee. May 2010 Draft Page 4 f) Within 10 business days of a request for the scheduling of a final inspection, the municipal assessor shall confirm or modify the previously estimated equalized assessed value of the improvements of the development; calculate the development fee; and thereafter notify the developer of the amount of the fee. g) Should Lebanon Borough fail to determine or notify the developer of the amount of the development fee within 10 business days of the request for final inspection, the developer may estimate the amount due and pay that estimated amount consistent with the dispute process set forth in subsection b. of section 37 of P.L.2008, c.46 (C.40:55D-8.6). Fifty percent of the development fee shall be collected at the time of issuance of the building permit. The remaining portion shall be collected at the issuance of the certificate of occupancy. The developer shall be responsible for paying the difference between the fee calculated at building permit and that determined at issuance of certificate of occupancy. i) Appeal of development fees 1) A developer may challenge residential development fees imposed by filing a challenge with the County Board of Taxation. Pending a review and determination by the Board, collected fees shall be placed in an interest bearing escrow account by Lebanon Borough. Appeals from a determination of the Board may be made to the tax court in accordance with the provisions of the State Tax Uniform Procedure Law, R.S.54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party. 2) A developer may challenge non-residential development fees imposed by filing a challenge with the Director of the Division of Taxation. Pending a review and determination by the Director, which shall be made within 45 days of receipt of the challenge, collected fees shall be placed in an interest bearing escrow account by Lebanon Borough. Appeals from a determination of the Director may be made to the tax court in accordance with the provisions of the State Tax Uniform Procedure Law, R.S.54:48-1 et seq., within 90 days after the date of such determination. Interest earned on amounts escrowed shall be credited to the prevailing party. 7. Affordable Housing trust fund a) May 2010 Draft There is hereby created a separate, interest-bearing housing trust fund to be maintained by the chief financial officer for the purpose of depositing development fees collected from residential and non-residential developers and proceeds from the sale of units with extinguished controls. Page 5 b) The following additional funds shall be deposited in the Affordable Housing Trust Fund and shall at all times be identifiable by source and amount: 1. payments in lieu of on-site construction of affordable units; 2. developer contributed funds to make ten percent (10%) of the adaptable entrances in a Boroughhouse or other multistory attached development accessible; 3. rental income from municipally operated units; 4. repayments from affordable housing program loans; 5. recapture funds; 6. proceeds from the sale of affordable units; and 7. 8 any other funds collected in connection with Lebanon Borough’s affordable housing program. c) Within seven days from the opening of the trust fund account, Lebanon Borough shall provide COAH with written authorization, in the form of a three-party escrow agreement between the municipality, the bank, and COAH to permit COAH to direct the disbursement of the funds as provided for in N.J.A.C. 5:97-8.13(b). d) All interest accrued in the housing trust fund shall only be used on eligible affordable housing activities approved by COAH. Use of funds a) The expenditure of all funds shall conform to a spending plan approved by COAH. Funds deposited in the housing trust fund may be used for any activity approved by COAH to address the Lebanon Borough’s fair share obligation and may be set up as a grant or revolving loan program. Such activities include, but are not limited to: preservation or purchase of housing for the purpose of maintaining or implementing affordability controls, rehabilitation, new construction of affordable housing units and related costs, accessory apartment, market to affordable, or regional housing partnership programs, conversion of existing non-residential buildings to create new affordable units, green building strategies designed to be cost saving and in accordance with accepted national or state standards, purchase of land for affordable housing, improvement of land to be used for affordable housing, extensions or improvements of roads and infrastructure to affordable housing sites, financial assistance designed to increase affordability, administration necessary for implementation of the Housing Element and Fair Share Plan, or any other activity as permitted pursuant to N.J.A.C. 5:97-8.7 through 8.9 and specified in the approved spending plan. b) Funds shall not be expended to reimburse Lebanon Borough for past housing activities. c) At least 30 percent of all development fees collected and interest earned shall be used to provide affordability assistance to low- and moderate-income households in affordable units included in the municipal Fair Share Plan. One-third of the affordability assistance May 2010 Draft Page 6 portion of development fees collected shall be used to provide affordability assistance to those households earning 30 percent or less of median income by region. 9. i. Affordability assistance programs may include down payment assistance, security deposit assistance, low interest loans, rental assistance, assistance with homeowners association or condominium fees and special assessments, and assistance with emergency repairs. ii. Affordability assistance to households earning 30 percent or less of median income may include buying down the cost of low or moderate income units in the municipal Fair Share Plan to make them affordable to households earning 30 percent or less of median income. iii. Payments in lieu of constructing affordable units on site and funds from the sale of units with extinguished controls shall be exempt from the affordability assistance requirement. d) Lebanon Borough may contract with a private or public entity to administer any part of its Housing Element and Fair Share Plan, including the requirement for affordability assistance, in accordance with N.J.A.C. 5:96-18. e) No more than 20 percent of all revenues collected from development fees, may be expended on administration, including, but not limited to, salaries and benefits for municipal employees or consultant fees necessary to develop or implement a new construction program, a Housing Element and Fair Share Plan, and/or an affirmative marketing program. In the case of a rehabilitation program, no more than 20 percent of the revenues collected from development fees shall be expended for such administrative expenses. Administrative funds may be used for income qualification of households, monitoring the turnover of sale and rental units, and compliance with COAH’s monitoring requirements. Legal or other fees related to litigation opposing affordable housing sites or objecting to the Council’s regulations and/or action are not eligible uses of the affordable housing trust fund. Monitoring a) May 2010 Draft Lebanon Borough shall complete and return to COAH all monitoring forms included in monitoring requirements related to the collection of development fees from residential and non-residential developers, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, barrier free escrow funds, rental income, repayments from affordable housing program loans, and any other funds collected in connection with Lebanon Borough’s housing program, as well as to the expenditure of revenues and implementation of the plan approved by the court. All monitoring reports shall be completed on forms designed by COAH. Page 7 10. Ongoing collection of fees a) The ability for Lebanon Borough to impose, collect and expend development fees shall expire with its judgment of compliance unless Lebanon Borough has filed an adopted Housing Element and Fair Share Plan with COAH, has petitioned for substantive certification, and has received COAH’s approval of its development fee ordinance. If Lebanon Borough fails to renew its ability to impose and collect development fees prior to the expiration of judgment of compliance, it may be subject to forfeiture of any or all funds remaining within its municipal trust fund. Any funds so forfeited shall be deposited into the "New Jersey Affordable Housing Trust Fund" established pursuant to section 20 of P.L.1985, c.222 (C.52:27D-320). Lebanon Borough shall not impose a residential development fee on a development that receives preliminary or final site plan approval after the expiration of its substantive certification or judgment of compliance, nor shall Lebanon Borough retroactively impose a development fee on such a development. Lebanon Borough shall not expend development fees after the expiration of its substantive certification or judgment of compliance. W:\5000's\Lebanon Borough\5226.FS Affordable Housing\Third Round\Fair Share Appendices\Clinton Models\Development Fee Ordinance.doc May 2010 Draft Page 8 Appendix H. Governing Body Resolution Requesting Approval of Development Fee Ordinance Appendix I. Spending Plan Clarke Caton Hintz Third Round Spending Plan Borough of Lebanon, Hunterdon County, New Jersey May 2010 Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan INTRODUCTION Lebanon Borough has prepared a Housing Element and Fair Share plan that addresses its regional fair share of the affordable housing need in accordance with the Municipal Land Use Law (N.J.S.A. 40:55D-1 et seq.), the Fair Housing Act (N.J.S.A. 52:27D-301) and the regulations of the Council on Affordable Housing (COAH) (N.J.A.C. 5:97-1 et seq. and N.J.A.C. 5:96-1 et seq.). A development fee ordinance creating a dedicated revenue source for affordable housing was most recently approved by COAH on July 18, 2005. The ordinance establishes Lebanon Borough’s affordable housing trust fund for which this spending plan is prepared. As of July 17, 2008, Lebanon Borough has collected $34,781.29, expended $0 resulting in a balance of $30,000. The balance as of March 31, 2010 is $35,337.54. All development fees, payments in lieu of constructing affordable units on site, funds from the sale of units with extinguished controls, and interest generated by the fees are deposited in a separate interest-bearing affordable housing trust fund account TD Bank. These funds shall be spent in accordance with N.J.A.C. 5:97-8.7-8.9 as described in the sections that follow. As of December 31, 2004, the prior round balance remaining in the affordable housing trust fund was $31,857.35. From January 1, 2005 through July 17, 2008, Lebanon Borough collected $2,923.949 in interest. From January 1, 2005 through July 17, 2008, Lebanon Borough expended funds on the affordable housing activities detailed in section 4 of this spending plan. Page 1 Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan REVENUES FOR CERTIFICATION PERIOD To calculate a projection of revenue anticipated during the period of third round Judgment of Repose, Lebanon Borough considered the following: (a) (b) Development fees: $114,000 1. Residential and nonresidential projects which have had development fees imposed upon them at the time of preliminary or final development approvals; 2. All projects currently before the planning and zoning boards for development approvals that may apply for building permits and certificates of occupancy; and 3. Future development that is likely to occur based on historical rates of development. Payment in lieu (PIL): $20,000 Lebanon Borough does not anticipate any payments in lieu (PIL) of construction from developers. (c) Other funding sources: $0 Lebanon Borough is not anticipating collecting money from other funding sources at this time. All monies in the Affordable Housing Trust fund are anticipated to come from development fees, payments in lieu of construction and interest. (d) Projected interest: $4,500 Based on the current average interest rate, Lebanon Borough anticipated collecting $4,500 in interest through 2018. Page 2 Clarke Caton Hintz 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Source of Funds – Housing Trust Fund 2009 Through 2018 Approved Development $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Development Pending Approval $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Projected Development $0 $0 $5 $5 $20 $21 $21 $21 $21 $114 Payments in Lieu of Construction $0 $0 $0 $0 $0 $10 $10 $0 $0 $20 Other Funds $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Interest $.5 $.5 $.5 $.5 $.5 $.5 $.5 $.5 $.5 $4.5 $.5 $.5 $5.5 $5.5 $20.5 $31.5 $31.5 $21.5 $21.5 $138.5 Development fees: Total Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan Lebanon Borough projects a total of $118,500 in revenue to be collected between May 1, 2010 and December 31, 2018. All interest earned on the account shall accrue to the account to be used only for the purposes of affordable housing. ADMINISTRATIVE MECHANISM TO COLLECT AND DISTRIBUTE FUNDS The following procedural sequence for the collection and distribution of development fee revenues shall be followed by Lebanon Borough: (a) Collection of development fee revenues: Collection of development fee revenues shall be consistent with Lebanon Borough’s development fee ordinance for both residential and non-residential developments in accordance with COAH’s rules and P.L.2008, c.46, sections 8 (C. 52:27D-329.2) and 32-38 (C. 40:55D-8.1 through 8.7). (b) Distribution of development fee revenues: The Planning Board adopts and forwards a resolution to the governing body recommending the expenditure of development fee revenues as set forth in this spending plan. The governing body reviews the request for consistency with the spending plan and adopts the recommendation by resolution. The release of funds requires the adoption of the governing body resolution in accordance with the COAH-approved spending plan. Once a request is approved by resolution, the Chief Financial Officer releases the requested revenue from the trust fund for the specific use approved in the governing body’s resolution. DESCRIPTION OF ANTICIPATED USE OF AFFORDABLE HOUSING FUNDS (a) Rehabilitation and new construction programs and projects (N.J.A.C. 5:97-8.7) Lebanon Borough will dedicate $70,000 to rehabilitation and new construction programs (see detailed descriptions in Fair Share Plan) as follows: Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan Rehabilitation program: $0 Lebanon Borough has satisfied the rehabilitation obligation; however, the Borough will use any excess funds for rehabilitation. Please see the 2010 Housing Element and Fair Share Plan for additional information. Accessory Apartment Program: $70,000 The Borough will conduct a three (3) unit accessory apartment program; two low income units and one moderate income unit shall be provided. Consistent with N.J.A.C. 5:97-(b)2., the Borough shall provide a $25,000 subsidy for the low income units and a $20,000 subsidy for the moderate income units. Accordingly, the Borough shall dedicate up to $70,000 for this program. (b) Affordability Assistance (N.J.A.C. 5:97-8.8) Lebanon Borough is required to spend a minimum of 30 percent of development fee revenue to render existing affordable units more affordable and one-third of that amount must be dedicated to very low-income households (i.e. households earning less than 30 percent of the regional median income). The actual affordability assistance minimums are calculated on an ongoing basis in the CTM system based on actual revenues. Page 5 Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan Projected Minimum Affordability Assistance Actual development fees and interest 4/1/2010 $35,338 Development fees and interest projected 2010-2018 + $138,500 Less housing activity expenditures through 6/2/2008 - $0 = $173,383 x 0.30 = $52,151 Total 30 percent requirement Less Affordability assistance expenditures through 12/31/2004 - $0 PROJECTED MINIMUM Affordability Assistance Requirement 1/1/2005 through 12/31/2018 = $52,151 ÷3= $17,384 PROJECTED MINIMUM Very Low-Income Affordability Assistance Requirement 1/1/2005 through 12/31/2018 Lebanon Borough will dedicate $52,151 from the affordable housing trust fund to render units more affordable, including $17,384 to render units more affordable to households earning 30 percent or less of median income by region, as follows: (c) Down-payment assistance; Rental assistance; Security deposit assistance Low interest loans Assistance with homeowners association or condominium fees and special assessments; and/or Converting low-income units to very-low-income units, etc. Administrative Expenses (N.J.A.C. 5:97-8.9) Lebanon Borough may use affordable housing trust fund revenue for related administrative costs up to a 20 percent limitation pending funding availability after programmatic and affordability assistance expenditures. The actual Page 6 Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan administrative expense maximum is calculated on an ongoing basis in the CTM system based on actual revenues. Projected Maximum Administrative Expenses Actual development fees and interest 5/1/2010 $35,338 Development fees and interest projected 2010-2018 + $138,500 Less RCA expenditures actual and projected - $0 Total 20 percent maximum permitted administrative expenses = $173,383 x 0.20 = $34,768 Less administrative expenditures through 12/31/2004 - $0 Projected allowed administrative expenditures = $34,768 Lebanon Borough projects that $34,768 will be available from the affordable housing trust fund to be used for administrative purposes. Projected administrative expenditures, subject to the 20 percent cap, are as follows: Borough Planner fees related to obtaining a Judgment of Repose; Rehabilitation administration fees Administration fees related to the Martin Village inclusionary development Administration development Administration fees related to the Luster / Dodger Blues inclusionary development Administration fees related to the Market to Affordable program fees related to the Lebanon Electric inclusionary EXPENDITURE SCHEDULE Lebanon Borough intends to use affordable housing trust fund revenues for the creation and/or rehabilitation of housing units. Where applicable, the creation/rehabilitation funding schedule below parallels the implementation schedule set forth in the Housing Element and Fair Share Plan and is summarized as follows. Page 7 Lebanon Borough, Hunterdon County May 2010 Spending Plan Projected Expenditure Schedule 2010 Through 2018 Program 2011 201 2 2013 201 4 2015 201 6 2017 201 8 Tota l Funds Expended and/or Dedicated (thousands) Units Projected 201 0 Clarke Caton Hintz Accessory Apartments 3 $0 $25 $20 $25 $0 $0 $0 $0 $0 $70 3 $0 $25 $20 $25 $0 $0 $0 $0 $0 $70 Affordability Assistance $5.7 $5.8 $5.8 $5.8 $5.8 $5.8 $5.8 $5.8 $5.8 $52.1 Administration $3.8 $3.9 $3.8 $3.9 $3.8 $3.9 $3.8 $3.9 $3.9 $34.7 $8.2 $33.2 $28.3 $33.2 $8.3 $8.2 $8.3 $8.2 $8.3 $156.8 Total Programs Total Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan EXCESS OR SHORTFALL OF FUNDS Pursuant to the Housing Element and Fair Share Plan, the governing body of Lebanon Borough has adopted a resolution agreeing to fund any shortfall of funds required for implementing the rehabilitation or market to affordable programs. In the event that a shortfall of anticipated revenues occurs, Lebanon Borough will bond to satisfy the gap in funding. A copy of the adopted resolution is attached. BARRIER FREE ESCROW Collection and distribution of barrier free funds shall be consistent with Lebanon Borough’s Affordable Housing Ordinance in accordance with N.J.A.C. 5:97-8.5. SUMMARY Lebanon Borough intends to spend affordable housing trust fund revenues pursuant to N.J.A.C. 5:97-8.7 through 8.9 and consistent with the housing programs outlined in the housing element and fair share plan dated November 2008. Lebanon Borough has a balance of $35,337.54.as of March 31, 2010 and anticipates an additional $138,500 in revenues before the expiration of its Judgment of Repose for a total of $173,383. The municipality will dedicate $70,000 toward the accessory apartment program], $44,500 to render units more affordable, and $29,700 to administrative costs. Any shortfall of funds will be offset by bonding. The municipality will dedicate the $16,464 in excess funds toward rehabilitation. Clarke Caton Hintz Lebanon Borough, Hunterdon County May 2010 Spending Plan Spending Plan Summary Revenues $35,338 Balance as of March 31, 2010 Projected Revenue from July 18, 2008 through 2018 1. Development fees + $114,000 2. Payments in lieu of construction + $20,000 3. Other funds + $0 + $4,500 = $173,383 Interest Total Projected Revenue Expenditures Funds used for Rehabilitation - $0 - $70,000 Affordability Assistance - $52,151 Administration - $34,768 Excess Funds for Additional Housing Activity = $0 Funds used for New Construction 1. Accessory Apartment 1. Rehabilitation $16,464 Total Projected Expenditures = $173,383 REMAINING BALANCE = $0.00 W:\5000's\Lebanon Borough\5226.FS Affordable Housing\Third Round\Fair Share Appendices\Spending Plan.doc Page 10 Appendix J. Governing Body Resolution Requesting Approval of Spending Plan Appendix K. Governing Body Resolution of Intent to Bond Appendix L. Draft Housing Liaison Ordinance and Appointing Resolution ORDINANCE NO. _______-____ AN ORDINANCE TO CREATE THE POSITION OF MUNICIPAL HOUSING LIAISON FOR THE PURPOSE OF ADMINISTERING LEBANON BOROUGH’S AFFORDABLE HOUSING PROGRAM PURSUANT TO THE FAIR HOUSING ACT. BE IT ORDAINED by the Council of Lebanon Borough in the County of Hunterdon and State of New Jersey that the following amendments be made to Chapter___of Lebanon Borough: Section 1. Purpose. The purpose of this article is to create the administrative mechanisms needed for the execution of Lebanon Borough’s responsibility to assist in the provision of affordable housing pursuant to the Fair Housing Act of 1985. Section 2. Definitions. As used in this article, the following terms shall have the meanings indicated: MUNICIPAL HOUSING LIAISON – The employee charged by the governing body with the responsibility for oversight and administration of the affordable housing program for Lebanon Borough ADMINISTRATIVE AGENT – The entity responsible for administering the affordability controls of some or all units in the affordable housing program for Lebanon Borough to ensure that the restricted units under administration are affirmatively marketed and sold or rented, as applicable, only to low- and moderate-income households. Section 3. Establishment of Municipal Housing Liaison position and compensation; powers and duties. A. Establishment of position of Municipal Housing Liaison. There is hereby established the position of Municipal Housing Liaison for Lebanon Borough. B. Subject to the approval of the Council on Affordable Housing (COAH), the Municipal Housing Liaison shall be appointed by the Governing Body and may be a full or part time municipal employee. C. The Municipal Housing Liaison shall be responsible for oversight and administration of the affordable housing program for Lebanon Borough, including the following responsibilities which may not be contracted out, exclusive of item 6 which may be contracted out: (1) Serving as Lebanon Borough’s primary point of contact for all inquiries from the State, affordable housing providers, Administrative Agents, and interested households; (2) Monitoring the status of all restricted units in Lebanon Borough’s Fair Share Plan; (3) Compiling, verifying, and submitting annual reports as required by COAH; (4) Coordinating meetings with affordable housing providers and Administrative Agents, as applicable; 1 (5) Attending continuing education opportunities on affordability controls, compliance monitoring, and affirmative marketing as offered or approved by COAH; (6) If applicable, serving as the Administrative Agent for some or all of the restricted units in Lebanon Borough as described in F. below. D. Subject to approval by COAH, Lebanon Borough may contract with or authorize a consultant, authority, government or any agency charged by the Governing Body, which entity shall have the responsibility of administering the affordable housing program of Lebanon Borough, except for those responsibilities which may not be contracted out pursuant to subsection C above. If Lebanon Borough contracts with another entity to administer all or any part of the affordable housing program, including the affordability controls and Affirmative Marketing Plan, the Municipal Housing Liaison shall supervise the contracting Administrative Agent. E. Compensation. Compensation shall be fixed by the Governing Body at the time of the appointment of the Municipal Housing Liaison. Section 4. Severability. If any section, subsection, paragraph, sentence or other part of this Ordinance is adjudged unconstitutional or invalid, such judgment shall not affect or invalidate the remainder of this Ordinance, but shall be confined in its effect to the section, subsection, paragraph, sentence or other part of this Ordinance directly involved in the controversy in which said judgment shall have been rendered and all other provisions of this Ordinance shall remain in full force and effect. Section 5. Inconsistent Ordinances Repealed. All ordinances or parts of ordinances which are inconsistent with the provisions of this ordinance are hereby repealed, but only to the extent of such inconsistencies. Section 6. Effective Date. This Ordinance shall take effect immediately upon final adoption and publication in the manner prescribed by law. 2 Adopted: (Insert date) ATTEST: APPROVED: ______________________________ ______________________________ xxxxxxxxxxxxxxxx Xxxxxxxxxxxxxxxx Municipal Clerk Mayor 3